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

Discussion in 'Options' started by jbtrader23, Jun 11, 2003.

  1. 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?
  2. 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.
  3. Agree, bought some shares
  4. white17


    I bot the october 45 call and shorted the 45 put.