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.
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