Washington Mutual (WM) NewsBite - WM Down on Analyst's Pessimistic Forecast

Posted on Monday, June 09, 2008 3:10 PM

Washington Mutual Inc. (WM) opened at 7.67. So far today, the stock has hit a low of 6.51 and a high of 7.67. WM is now trading at 6.58, down 0.95 (-12.39%). The stock hit its 52 week high of 44.19 in June and set its 52 week low of 6.51 today. Shares of Washington Mutual have been plunging in today's session after a UBS lifted his forecast for mortgage losses. The broker expects the bank will suffer $21.7 billion in mortgage losses through 2011, compared with WaMu's forecast of between $12 billion and $19 billion. Technical indicators for the stock are neutral and steady while S&P gives WM a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an October bear-call credit spread above the $11 range. WM stock could rise up to 67.2% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]