Not the same stocks. AIG is in a dire situation having to pay colossal amounts of cash in the coming year and being forced to reduce its size to minimum.
I agree that they are not the same. AIG is in a dire situation where it is receiving a loan at a significantly high interest rate, and must sell assets quickly at firesale prices in order to reduce the amounts payable to the Government. FRE and FNM are insolvent institutions with rapidly deteriorating balance sheets, leveraged at ridiculous multiples that make Lehman Brothers look like a well run company.
Up to $2.05 in After Hours. Freakin Cramer just said to sell into the spike after the Bailout is announced. This thing has been up 40% for the last couple of days.
Agree, I sold out of FRE with a huge return but didnt want to risk losing half of it in a single day if FRE decides to sell off like AIG has, I think FRE is headed back below $1.00 where I would be buying again. I think tomorrow it could come down below $1.50, its overbought in my opinion.
Seriously, everyone should keep their trading size small on these highly speculative / volatile issues. And never bet with any money you canât afford to lose. Good trading
christ this thing is up another 50%. I would got in on some puts now but the premium is insane on them. Guess i will wait for a final pop to ~$3.5 before getting some 2.5 puts. pure insanity.