Annaly Update

I purchased Annaly, in Aug 08, it has been a solid performer. In December 08, I sold April 16 calls against half the position. The stock currently trades at 14.43. Annaly is poised to continue performing well considering the steepening of the yield curve. In a nutshell, Annaly borrows at Fed Funds and buys Agency-backed mortgages. Annaly is moderately leveraged at 7X. The biggest risk to our NLY ratings is that the Fed would resume its tightening campaign at some point in the next 12 months however I find that most unlikely given recent rhetoric. The stock is in a good trading range. If I can get some premium I may write calls against the rest of the position. I will look to exit around 17 if possible.