Sohu.com (SOHU) NewsBite - Sohu.com Plunges on Fed's Comments

Posted on Tuesday, July 15, 2008 10:47 AM

Sohu.com Inc. (SOHU) opened at 66.76. So far today, the stock has hit a low of 61.81 and a high of 67.00. SOHU is now trading at 62.82, down 5.67 (-8.49%). The stock hit its 52 week high of 91.50 in June and set its 52 week low of 27.30 in August. SOHU has been climbing for the past year. Sohu.com shares have been plunging along with the broader market on Federal Reserve Chairman Ben Bernanke's comments about the economy. Bernanke told Congress the U.S. economy is faced with "numerous difficulties," such as strains in financial markets, a weak job market and ongoing weakness in the housing market. Technical indicators for the stock are neutral but deteriorating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $85 range. SOHU stock could rise up to 35.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]