June 9, 2020 - MDT Alert (MFA)

I had recommended MFA back on March 20th based on two scenarios.

The first was that the stock carried a decent call option premium. And the second reason was because at the time, they were paying a hefty dividend.

With the turmoil in the mortgage market created by the Covid-19 pandemic, MFA has been forced to eliminate its dividend and deleverage.

Therefore, I am going to recommend you sell call options at every opportunity you get.

And this is one of those opportunities.

Here is the suggestion.

Sell to Open (1) June 19th - $4 call for every 100 shares you own. The June $4 calls can be sold for $0.65.

I know these calls are slightly in the money, but you should have
collected $0.40 in call premium on this position already.

This is more of a hedge at this point.

This alert applies only if you own shares in MFA.

If you followed the original alert, you would own 1,000 shares of MFA. Therefore you would be selling 10 calls.