Centex (CTX) NewsBite - Centex Plunges on Recession Fears

Posted on Tuesday, January 15, 2008 1:42 PM

Centex Corp. (CTX) opened at 21.08. So far today, the stock has hit a low of 20.19 and a high of 21.30. CTX is now trading at 20.27, down 1.24 (-5.88%). The stock hit its 52 week high of 55.62 in February and set its 52 week low of 17.77 in November. Shares of homebuilders have been tumbling today along with the broader market, following a disappointing retail sales report. The Commerce Department reported this morning that retail sales unexpectedly fell 0.4% in December, increasing investors’ worries over a possible recession. Technical indicators for the stock are bullish but deteriorating while S&P gives CTX a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a February bear-call credit spread above the $25 range. CTX stock could rise up to 23.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]