Continental Airlines (CAL) NewsBite - CAL Rises on Lower Oil

Posted on Wednesday, July 23, 2008 10:06 AM

Continental Airlines Inc (CAL) opened at $13.46. So far today the stock has hit a low of $13.43 and a high of $14.15. CAL is now trading at $13.92, up 0.66 (4.98%). After hitting a one-year high of $37.79 in October, the stock hit a one-year low of $5.91 in July. CAL shares are trading higher this morning after the company released its latest financial statement. CAL is also getting a boost from lower oil futures, which fell once Hurricane Dolly looked like it will not hit key oil installations in the U.S. Gulf of Mexico. Technical indicators for CAL are bearish but improving slightly, 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 a December bull-put credit spread below the $5 range. CAL hasn’t been below $5.90 at all in the past year and has shown support just below $9 recently. This trade could be risky if the price of fuel starts to climb again, but even if that happens, this position could be protected by the support the stock might find at its year low just below $6. [LHF- Seven Summits Strategic Investments NewsBite]