nycDem

Fannie and Freddie: The Heat Is On

Trader Mark, I love your ideas. But I'm thinking that this is too risky, though, for a straight put/short. It seems that all this noise is coming from one source: Barron's.

As a trader, the way to play this is through the volatility. FRE/FNM are either going to rocket upwards or come crashing down.

So my advice might be to buy a put/call straddle or a strangle and sit back and watch the fireworks. Heck, both of them already dropped 22% today.