Fannie Mae (FNM) NewsBite - FNM Surges on White House Statement

Posted on Wednesday, July 16, 2008 1:56 PM

Fannie Mae (FNM) opened at 7.93. So far today, the stock has hit a low of 7.55 and a high of 8.72. FNM is now trading at 8.10, up 1.03 (12.99%). The stock hit its 52 week high of 70.57 in August and set its 52 week low of 6.68 in July. FNM has been moving downwards for the past year. Fannie Mae shares have been soaring today following a White House statement that Congress should be able to approve legislation aimed at providing back up funding for FNM and Freddie Mac (FRE) by next week. Technical indicators for the stock are bearish and steady while S&P gives FNM a very negative 1 STAR (out of 5) strong sell rating. If you’re looking for a hedged play on this stock, consider an August bull-put credit spread below the $5 range. FNM stock could fall up to 38.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]