OK, this is normalized 180 day volatility in FNM, but only going back the past 2 month’s in order to best visually depict what has gone on here in the past week.

In other words, this is the implied volatility of what is now pretty much a Jan. option and it has basically doubled in about a week.

We have seen plenty of extraordinary volatility spikes over the course of time. But not sure I have ever seen one where longer-dated options exploded this much and this quickly.

Essentially, the options pretty much have priced in worthless equity. Or at least hedged against worthless equity.