This has been a stock that has made me money (FNM), I had bought puts on it around 27, sold out at 20 and then bought it a few days later (call option) and sold it around 29. Can't catch it perfectly, but the charts look like this is headed back to the teens. Anyone else trading this stock? might just be the next bearn sterns, really think this is headed down fast.
careful, it's heavily shorted which I found out painfully when the government started buying mortgage backed securities and the thing went up 70% in 4 days, I got out before that but now without a significant loss. Options seem to price in that their is a legitimate chance of bankruptcy, so I'm not sure what the best way to play it is, maybe just short xlf of which it's part of, that's what Jim Rogers does apparently.