Washington Mutual Preferred fka WAMPQ

[ptolomeo]

Knowing that the (real) ratio is 35, I'm analyzing the posibility to invest in this preferreds as spreads.

I'll try to explain myself with an example:

If the ratio of P / K is over 35 it means P's are overpriced and/or Ks are undervalued. Then I would SELL (short) X WAMPQs and BUY 35X WAMKQs.

As 35 is the average, this ratio will probably go under 35 at some time, then I would BUY the X WAMPQ shares that I prevously shorted and SELL the 35X shares that previously bought.

The problem is that there is no big share float to guarantee I will be able to buy/sell any shares ata given time, but if I see more movement I will start trading this spreads.

I currently have a heavy position on WAMPQ and a little one in both WAMUQ and WAHUQ.