Trade Management: NLY Annaly Capital Management

2/2/09 Bought NLY @15.28
2/2/09 Sold NLY February 15 calls @ 1.00 (expired)
2/23/09 Sold NLY March 15 calls @ .57

This trade is in my Roth IRA. I have downside protection to 13.71. If these get called away I will earn 9.41% for 44 days or 78.09% annual.

I thought about selling the 14's since this market is such a bundle of joy. I decided against it since NLY pays a 14% dividend and in my book that adds to my downside protection. As of this writing NLY is trading at 14.42.

NLY is a mortgage REIT which might seem like an idiotic thing to invest in but all their mortgages are Fannie and Freddie and, therefore, government backed. Couple that with the dividend and pretty nice option premiums and NLY is a solid albeit not very sexy covered call candidate in my opinion.