FNM, FRE LEAP put options? Hmmm....

J

jbtrader23

I'm itching to pull the trigger on some Jan '05 FNM and FRE puts.

In a year and a half you could have:

Housing bubble pops

Derivitive blow ups

Accounting, SEC investigations

For FNM, with the $70 puts at around $10, you could see those go up many times in value. The stock is only $5 off it's recent high. Who knows what could happen with FRE in a year and a half.

Any other thoughts on FNM, FRE?
 
Well, I took the opposite position and went long a Jan 05 call. I'm up 30% so far. But that's what makes a market!

As for a put, I'd be very nervous if investigations don't turn up anything deep at FRE. And I suspect they won't. This company has too many supporters to let it fail. The FRE board obviously demonstrated terrible judgement in the way they handled this affair, but I don't believe there are real serious problems.
 
Quote from lindq:

Well, I took the opposite position and went long a Jan 05 call. I'm up 30% so far. But that's what makes a market!

As for a put, I'd be very nervous if investigations don't turn up anything deep at FRE. And I suspect they won't. This company has too many supporters to let it fail. The FRE board obviously demonstrated terrible judgement in the way they handled this affair, but I don't believe there are real serious problems.
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Agree, bought some shares
 
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