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To: re3 who wrote (73749)3/1/2001 1:25:20 PM
From: pater tenebrarum  Respond to of 436258
 
since FNM and FRE puts are cheap, i think it's best to play relatively near dated ones not too far ootm. the exercise can be repeated if necessary. whether it is time or not, well, they sure look bloated to me. everybody's assuming they're 'safe' but as i have repeatedly pointed out, 1:154 leverage is not my idea of 'safe'.

the govt. guarantee will likely extend to the bond holders, but the shareholders are a different matter.