Stocks quoted in this article:
Mortgage firm Fannie Mae (FNM – 79-3/8) has been a shining star in the murky market of late, appreciating 65 percent from its August 2 low. This rally, which has kept the shares afloat atop their short-term and long-term moving averages, took the stock to a new all-time high above the 80 mark yesterday.
Options players are beginning to take note of the equity's potential, as evidenced by the volume seen today on the January 2002 90 LEAPS call. Over 6,500 contracts have traded on this option already today. Prior to today's trading, this LEAPS option was home to only 1,883 contracts. The majority of this volume transpired early in the day, as six blocks of 1,000 contracts each traded between 10:00 and 10:30 a.m. These primarily went off between the bid and the ask prices. The most-active FNM put today is the December 80 option, which has seen 248 contracts change hands.