Boston, MA 02/04/2014 (wallstreetpr) – With its core business revolving around capital investments and the resultant net income’s distribution to stakeholders, American private investment firm Annaly Capital Management, Inc. (NYSE:NLY) seems to have stirred up investor and analyst speculations over its recent put and call options with expiration in July.
The Put Option
For the put option that evaluates to a $9 strike with a $0.18 bid per share, experts opine that the premium would signify 2% as returns, aggregating to an annualized rate of return of about 4.4%, while envisaging further that owning Annaly shares would have better prospects with the 4.4% yield on annualized basis, unless Annaly shares drop roughly 17%, which could entail consistent premium at the 4.4% annualized rate of return.
The Call Option
Meanwhile, the call option for Annaly Capital Management, Inc. (NYSE:NLY) investors looking for quick equity returns could think of divesting stocks at a $11 strike to look at a premium of about $0.42, which would evaluate to an extra 8.5% rate of return at the prevailing share price, according to analysts. Furthermore, analyst predictions imply that unless Annaly’s shares rise at least 1.1% from the prevailing rates, the shareholder is likely to earn at least 4% in the event the stock is called, in addition to the dividend yield collected before the stock is called.
Retirement of Director John A. Lambiase
Meanwhile, Annaly Capital Management, Inc. (NYSE:NLY) announced yesterday the retirement of one of its oldest executive board members, non-independent director John A. Lambiase, who has been with the private equity firm since its inception in 1997. He will close his tenure with Annaly’s upcoming Company’s 2014 Annual Meeting of Shareholders.
The Maryland, USA-based corporation that recently converted to a Real Estate Investment Trust (REIT), a popular option among such firms, is due to declare its financial earnings report for its fourth quarter and fiscal year ended December 2013 on February 25. Annaly Capital Management, Inc. (NYSE:NLY) stocks rose to $10.83 on February 3 from their previous $10.77, while after-hours figures dropped to $10.80.
