Option update: Freddie Mac and Fannie Mae volatility increases on sell off


Freddie Mac (NYSE: FRE) is recently down$10.61 to $27 after reporting a Q3 loss of $2 billion, reflecting a higher provision for credit losses and losses on mark-to-market items. FRE is considering issuing preferred, convertible or common stock. FRE is considering cutting its Q4 dividend by 50%. FRE December option implied volatility of 89 is above a level of 73 from yesterday and above its 26-week average of 36 according to Track Data, suggesting larger price fluctuations.

Fannie Mae (NYSE: FNM) is recently down $6.83 to $30.75. FNM December option implied volatility of 93 is above a level of 81 from yesterday and above its 26-month average of 36 according to Track Data, suggesting larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Symbol Lookup
IndexesChangePrice
DJIA-111.1412,779.32
NASDAQ-17.632,909.60
S&P 500-8.961,342.99

Last updated: February 10, 2012: 01:16 PM

Hot Stocks

General Electric

18.915-0.215(-1.12)

Alcoa

10.34-0.30(-2.82)

Apple Inc

495.96+2.79(+0.57)

Google Inc 'A'

607.31-4.15(-0.68)

Bank of America

8.095-0.085(-1.04)

Wal-Mart Stores

61.49-0.47(-0.76)

Exxon Mobil Corp

83.74-1.14(-1.34)

Ford

12.425-0.265(-2.09)

Citigroup

32.94-0.72(-2.14)

IBM

191.85-1.28(-0.66)

Yahoo

16.25+0.25(+1.56)

Starbucks

48.84-0.36(-0.73)

Microsoft

30.57-0.20(-0.65)

Home Depot

45.23-0.04(-0.09)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1328897789370 ms.