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Option update: Fannie Mae volatility stays elevated as shares rally into rate cut

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Fannie Mae (NYSE: FNM) is recently up $4.99 to $27.17. Goldman Sachs lowered its 12-month price target to $16 from $24. FNM call option volume is 46,713 contracts, compared to put volume of 64,318 contracts.

FNM April option implied volatility of 98 is above its 26-week average of 58 according to Track Data, suggesting larger price risk.

The Volatility Index (VIX) is down 3.26 to 28.98.

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

Symbol Lookup
IndexesChangePrice
DJIA+30.6910,464.40
NASDAQ+6.872,176.05
S&P 500+4.981,110.63

Last updated: November 26, 2009: 11:36 PM

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