Leverage Alert: Fannie Mae

ALL LEVERAGE SERVICES

WEDNESDAY, DECEMBER 29, 2004
1/4 CLOSE-OUT INSTRUCTIONS!

CANCEL ANY OPEN ORDERS AND PLACE A DAY-LIMIT ORDER TO SELL (TO CLOSE) ONE-
QUARTER OF YOUR ORIGINAL POSITION IN THE FANNIE MAE JANUARY 2005 75 PUT
(FNMMO) AT 6.10 OR BETTER.

FOR EXAMPLE, IF YOU ORIGINALLY PURCHASED 12 CONTRACTS UPON INITIATION OF
THIS POSITION, YOU SHOULD SELL 3 CONTRACTS AT THIS TIME.

THIS WILL LEAVE 25% OF YOUR ORIGINAL POSITION OPEN.

THIS OPTION IS CURRENTLY BID AT 6.60, ASKED AT 6.90.

IF THIS ONE-QUARTER POSITION HAS NOT BEEN CLOSED BY 11:15 A.M. EASTERN TIME
TODAY, CANCEL YOUR DAY-LIMIT ORDER AND PLACE AN ORDER TO SELL (TO CLOSE)
THE ONE-QUARTER POSITION AT THE CURRENT MARKET PRICE.

FNM IS CURRENTLY TRADING AT 68.20.

WE RECOMMEND TAKING PROFITS OF APPROXIMATELY 150 PERCENT ON THIS QUARTER
BASED ON THE AVERAGE ENTRY PRICE. WE RECOMMEND HOLDING THE FINAL 25
PERCENT OF THE POSITION TO ATTEMPT TO LET PROFITS RUN.

YOU WILL NOT RECEIVE FURTHER COMMUNICATION CONCERNING THIS TRADE, INCLUDING
CLOSEOUT INSTRUCTIONS, IF YOUR SUBSCRIPTION IS NOT ACTIVE AT THE TIME WE
ISSUE FOLLOW-UP INSTRUCTIONS