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To: mishedlo who wrote (101892)	5/13/2001 9:57:08 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

<Joan, Patron, or anyone else out there have a feel for this?> Yes, look at the prices of the options on a vol basis... if the LEAPS are as cheap or cheaper than the closer ones, they're as good unless VOL moves down over time [like a longer term bond vs shorter term 'rolls']... and you're locked in. If you happen to own some SEP for example and the market goes banana's on the downside coming into your month but the stock doesn't hit your strike [quite yet] you're screwed, you'll be paying the piper to roll. I own the LEAPS. DAK

To: mishedlo who wrote (101892)	5/14/2001 2:25:07 AM
From: patron_anejo_por_favor	Respond to of 436258

For now, my strategy on FNM has been to buy OOTM puts when it tests the top of its range (low 80's) and sell when it hits 74-75. Usually a consistent double out of it if you buy 'em a month ahead. It's really, really difficult to predict exactly (or even approximately) when FNM will blow up. They are heavily defended in the market and in Congress. Much like gold, it will probably move suddenly and swiftly. If you buy 2003 leaps, you should catch the move, but you'll pay for time, so the idea of buying the leaps in 3rds makes sense, so that some of the time premium will have presumably evaporated by the time you purchase the last 2/3'rds. Space the buys maybe 4 months apart, and try to catch the top of the trading range (if it's still in a range by then). I presume Freddie follows the same pattern, but I really haven't followed it as closely. The above is all MHO. This one's gonna take some time (hopefully with that I've jinxed it irreperably, and it gaps down 10 tomorrow..<G>)