SLM Corp. (SLM) NewsBite - SLM Rises With Financial Sector

Posted on Monday, July 14, 2008 10:16 AM
SLM Corp. (SLM) opened at $16.26. So far today the stock has hit a low of $16.14 and a high of $17.34. SLM is now trading at $16.04, up 0.05 (0.31%). After hitting a one-year high of $54.29 last July, the stock hit a one-year low of $12.35 last week. SLM shares are trading higher with other financial stocks as investors are expressing approval of the government's plan to bolster troubled homelenders Freddie Mac (FRE) and Fannie Mae (FNM). Investors had worried last week that troubles at the lenders could stall recovery in the troubled financial sector. Technical indicators for SLM are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an October bull-put credit spread below the $10 range. SLM hasn’t been below $12.35 at all in the past year and has shown support around $15 recently. This trade could be risky if the company's earnings (due out on 7/23) disappoint, but even if that happens, this position could be protected by the support the stock might find around $15, where it bottomed out in March. [LHF- Seven Summits Strategic Investments NewsBite]
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