Leverage Alert: Fannie Mae

ALL LEVERAGE SERVICES

THURSDAY, DECEMBER 23, 2004
½-POSITION CLOSEOUT INSTRUCTIONS!

CANCEL ANY OPEN ORDERS AND PLACE A DAY-LIMIT ORDER TO SELL (TO CLOSE) THE
FIRST ONE-HALF OF YOUR POSITION IN THE FANNIE MAE JANUARY 2005 75 PUT
(FNMMO) AT 5.00 OR BETTER.

IF THIS INITIAL ONE-HALF POSITION HAS NOT BEEN CLOSED BY 3:45 P.M. EASTERN
TIME, CANCEL YOUR DAY-LIMIT ORDER AND PLACE AN ORDER TO SELL (TO CLOSE) THE
ONE-HALF POSITION AT THE CURRENT MARKET PRICE.

THE OPTION IS CURRENTLY BID AT 5.40, ASKED AT 5.50.

FNM IS CURRENTLY AT 69.58.

WE RECOMMEND EXITING THE FIRST HALF OF THIS POSITION IN ORDER TO LOCK-IN
PROFITS IN EXCESS OF 100% FOR THIS HALF, BASED UPON THE AVERAGE ENTRY
PRICE. WE RECOMMEND KEEPING THE SECOND HALF OF THE TRADE OPEN IN ORDER TO
ATTEMPT TO MAXIMIZE PROFITS.

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.