Option update: Fannie Mae and Freddie Mac volatility remains elevated

Fannie Mae (NYSE: FNM) closed at $28.99 Thursday.

Merrill downgraded FNM to Sell from Neutral. Bank of America reiterated its Buy rating on FNM on Feb. 21.

FNM March option implied volatility of 77 is above its 26-week average of 53 according to Track Data, suggesting larger price fluctuations.

Freddie Mac (NYSE: FRE) closed at $27.75 Thursday. Merrill Lynch downgraded its rating on FRE to Sell from Neutral.

FRE March option implied volatility of 84 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

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

Tags: Fannie Mae, FannieMae, fnm, fre, Freddie Mac, FreddieMac, inthenews, option implied volatility, OptionImpliedVolatility

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