As I look around the carnage that this virus has done to the financial markets and try and find opportunities, there are a few stocks standing out.
And most of them are high-yielding stocks.
And today I would like to make a suggestion on one of them.
That company is AGNC Investment Corp. (AGNC).
AGNC is trading right at its lower band on the daily chart and it pays a hefty 16 cents per share dividend.
Based on where it is trading now, which is $13.19, the annual return works out to 14.5%.
And AGNC does have weekly options. And with the volatility in the markets at the moment, they now carry a decent premium.
My suggestion today is to buy AGNC at the market, which is $13.19.
Then Sell to Open (1) March 20th, $13.50 call for every 100 shares you buy.
The March 13th - $13.50 call can be sold for $0.40. And I suggest you collect the premium.
If these calls area assigned this Friday, the return will be 5.4% for 5 days.
Because of the panic in this market, limit the position to 300 shares or 3.9% of the portfolio.
