Ouch....not a great start on this one.

I was looking at this one at around $3.00ish, but went another way with my working capital at the time. Too bad for me I guess.

 I'm all for going long on some stuff, but I think you may have got in at the high on this one. If you can even get close to even, you might want to consider selling and get back in at a lower price. Watch the Wash Sale rules if you take a loss, but may be a better strategy in the end.

Just my opinion and you are free to tell me to go fly a kite if you like...:0)

friedman, billings & ramsey analyst did a write up

#1 reduced amount to loan 798 million to 268 million

#2 5 cents a share in 2009 cut from 55 cents to 17 cents

#3 $4 price target.

#5 reduced volume after spike which is normal, but still negative

#6 having harder time selling the bonds, due to defaults and assets backing the loans.

that is why i tossed the 3 calls for a loss. I am curious on how this plays out. the share price declines some and levels out, or news comes out pushing the stock farther either way.

I side with corbin on this, I have to add your belief is sound and have to add that the new written loans will be more selective but not enough to escape the stigma of the times. plus alot of reports coming out next week on the overall economy. even though the bulldogs won their season opener, not sure that will have any affect on the finiancials of FMD at this time :)

Well mark today in your calendar since you could have gotten out with a small profit at the current day's high ($4.49). Just in case I want to say I told you so someday...lol.

Not that I would ever do that...:0)

This is a covered call play so if I were to sell 100 shares at 4.49, my profits would be eaten up in commissions and buying back the call to unwind the position.  My strategy is to hold until October expiration and either exit on assignment if FMD spikes higher or roll the option for profit should FMD choose to trade sideways.