Also keep in mind that the volatility is driven by daytraders, who tend to be very nervous, opening and closing positions very quickly based on rumors and/or a variety of perceived technical factors. To make matters even more unstable, the stock has no "real" value while under conservatorship, so any value is purely speculative and based on the shaky assumption that the government will someday redeem the senior preferreds and release the GSEs back to their investors. It's a rollercoaster ride that's not going to end anytime soon, and there's no guarantee that it will stay on the rails. That said, it's still a fun ride. I love to play craps, but I only gamble what I'm comfortable losing at the end of the day. I suggest you play FNMA the same way.