Heavy Put Action in Fannie Mae (FNM)
June 16, 2010 11:13 AM
Shares of Federal National Mortgage Association (NYSE: FNM) are lower on the session by 51.42%, currently trading at $0.4491. The stock cratered this morning on news that it is being de-listed from the NYSE and Chicago Stock Exchange.
Options volume is exploding on the name today; put volume alone is now running at 72x the daily average.
The vast majority of the action is occurring on the January 2012 $1.00 put, where 101,000 contracts have traded. It appears that the majority has been sold for $0.70. This would indicate that the trader believes the stock does not move below $0.30 anytime soon.
Federal National Mortgage Association is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage related assets are purchased and sold.
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