I started trading options recently after trading stocks for 5 years. I am trying to learn more on options, I am looking for a good book to succesfully trade option spreads. When I will have an option strategy that sounds like it should work, I will try to post it here to get some guidance, I will also document my option trades here so you can watch my preformance during my journey.
Today I bought 5 AGNC diagonal spreads; buying the $25 Jan 2013 call and selling the Sep $29 call for a total debit of 3.35. Here is my reasoning, AGNC seems to be less of a risk now since fed will hold rates low till 2013. My max risk is 3.35, and if AGNC would trade higher then $29 I would get $4 creating a 20% return in less then a month. I also have the option to roll over to Oct call right before Sep expiration. What do you think, does that make sense?