Fannie Mae (NYSE: FNM) volatility up on Congressional housing-credit-liquidity debate:

FNM was recently down $4.14 to $43.66. Dow Jones reported Democratic leaders in Congress are preparing to consider multiple bills that would reform, but still preserve, lending to people with weaker credit. The Senate could also vote on a measure that would temporarily lift the portfolio limits at FNM and FRE to provide more liquidity. FNM call option volume of 17, 279 contracts compared to put volume of 19,026 contracts. FNM November 45 straddle was at $2.85. FNM December option implied volatility of 66 is above its 26-week average of 34 according to Track Data, suggesting larger price fluctuations.

Freddie Mac (NYSE: FRE) recently down $2.40 to $41.83;

FRE November 40 straddle was priced at $2.40. FRE December option implied volatility of 61 was above its 26-week average of 34 according to Track Data, suggesting larger price fluctuations. November options expire on November 16.

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