Washington Mutual (WM) NewsBite - WM Tumbles on GS Capital Warning

Posted on Tuesday, June 17, 2008 2:17 PM

Washington Mutual Inc. (WM) opened at 6.84. So far today, the stock has hit a low of 6.22 and a high of 6.91. WM is now trading at 6.38, down 0.37 (-5.41%). The stock hit its 52 week high of 44.19 in June and set its 52 week low of 5.75 in June. WM has been moving downwards for the past year. Washington Mutual shares have been tumbling with other banks after report from Goldman Sachs Group Inc. (GS) estimated U.S. banks may need to raise as much as $65 billion in new capital. Stirring worries about further fallout from the mortgage crisis. Technical indicators for the stock are bearish 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 72.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]