what is gap risk? risk that it gaps down tomorrow, again?
I was looking at FNMA 5.125 14… where do you see them on fri?
any haircut on subs???
ZeroBonus Wrote: ------------------------------------------------------- > just bought 20K shares in each What price did you pay?
NakedPuts Wrote: ------------------------------------------------------- > ZeroBonus Wrote: > -------------------------------------------------- > ----- > > pure volatility play > > > > if there are any signs of a temporary up trend, > I > > will liquidate. Make a quick buck (possibly) > > > > Set stop loss @ .75 for both. > > smart, cuz there’s no gap risk here, right? I think the current trade volume will limit the gap risk. Also this is a one day trade only. I will get out by 4PM.
virginCFAhooker Wrote: ------------------------------------------------------- > what is gap risk? risk that it gaps down > tomorrow, again? The risk that it gaps down at any point and invalidates the stop loss. If the guy’s just playing with funny money, then this isn’t a bad idea to play around with. If he’s confusing it in any way with “investing”, then he’s wrong. I like GB -2 tonight better than I like FRE.
soxboys21 Wrote: ------------------------------------------------------- > ZeroBonus Wrote: > -------------------------------------------------- > ----- > > just bought 20K shares in each > > What price did you pay? FNM - 0.81 + 9.99 FRE - 0.83 + 9.99
grover33 Wrote: ------------------------------------------------------- > I was looking at FNMA 5.125 14… where do you see > them on fri? Seeing them 186 in for the day 224/124
NakedPuts Wrote: ------------------------------------------------------- > ZeroBonus Wrote: > -------------------------------------------------- > ----- > > pure volatility play > > > > if there are any signs of a temporary up trend, > I > > will liquidate. Make a quick buck (possibly) > > > > Set stop loss @ .75 for both. > > smart, cuz there’s no gap risk here, right? I think a lot of folks will be thinking a long this line. I remember early birds getting jumping in making similar plays on Bear common back in March and doing pretty well. Don’t forget they have to trade at .75 for the stop to be useful. Hopefully they won’t open below you stop price and stay in below that range for a prolonged period. How long is target holding period anyway?
too late stop loss @ .75 was executed Already out of trade. Took a loss of a few hundred bucks. Oh well
looks like the dealer won that hand.
Yeah, I was close to that neighborhood too. Phew, wanted to make sure I wasnt totally off on my levels. I dont follow that mkt all that closely, but was the curve super inverted before or just a shade? Have to think that is the only reason '11s cheaper. From an issue standpoint, the 11s are twice the size, probably better liquidity.
bannisja Wrote: ------------------------------------------------------- > looks like the dealer won that hand. I guess so my friend. Will try again tomorrow.
the curve was inverted: 2s - 600 off 5s - 450 off 10s - 375 off flattened out significantly…
ZeroBonus Wrote: ------------------------------------------------------- > bannisja Wrote: > -------------------------------------------------- > ----- > > looks like the dealer won that hand. > > > I guess so my friend. Will try again tomorrow. Uh, zero, you know, uh… Don’t you get it? This stock ain’t worth dick. The scretary of Treasury all but said that they are taking away all the equity value. There is no bankruptcy court to approve a reorg plan. There is just no chance it’s worth anything. Do you work at a place with a risk manager? If I was your risk manager, you’d be getting serious s^%t from me right now.
Joey, when will you learn? You’re not supposed to look at the balance sheet. Look at the long term earnings power. When it recovers you’ll be rich.
went in again at 0.85 a piece Up 0.1 per share.
Warren Buffett sold his fannie stock in 1999. They asked him today if he would consider getting back in it now. He said, “Get into what?”
FNM - out at 0.85 ($20 loss on commissions) FRE - out at 0.92 ($1400 profit) Done with the Fannie/Freddie trade for the day and hopefully forever
Take a look at the FNM puts. 2.50 strike up 3500% 3 strike up 2700%