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To: TheStockFairy who wrote (166223)	5/16/2002 10:50:23 AM
From: Gut Trader	Respond to of 436258

The secret is in the Fairy Dust silly wabbit./eom

To: TheStockFairy who wrote (166223)	5/16/2002 10:52:30 AM
From: hdl	Read Replies (2) \| Respond to of 436258

i'm confused as to why the dow has picked the last hour to spike

To: TheStockFairy who wrote (166223)	5/16/2002 11:37:38 AM
From: LLCF	Read Replies (1) \| Respond to of 436258

<<lower housing starts is bullish for FNM now? Pls explain to me how this works. >> It's a growth story... they'll start buying credit card paper or SOMETHING, don't worry! -gggg- DAK

To: TheStockFairy who wrote (166223)	5/16/2002 8:31:45 PM
From: mishedlo	Respond to of 436258

lower housing starts is bullish for FNM now? Pls explain to me how this works. This on is easy. 1)When the market is down buyers rush to FNM as a safe and sane play. 2)When there is bad housing data (check) this POS always rises 3) FNM only reliably falls in one of two conditions neither of which occurs very often a) Complete selling of everyhing on the Dow b) FNM is above 82 or so 4) Periodically FNM falls 2-4 points for no reason. It also rises 2-4 poinst for no reason. I suspect some f*uckhead "specialist" is trading his own account for 2-4 points as he sees fit. The way to play FNM is to buy a double position of LEAP ITM puts (at 82 or above). Sell 1/2 at 78 (you could be greedy and try for 76 but that seldom happens, when it does oddly enough calls are usually appropriate ng). Add the 1/2 back above 82 and not before. You will get the benefit of quite a few 4 point drops but will only be 1/2 in when the crash occurs. A four point drop on ITMs might only get you 2.5 points (or less) but one could have done this perhaps 5-6 times this year (while others keep betting on the current month collapse which never happens). I bet TomMaso would like this strategy. M