Fannie Mae (FNM) NewsBite - FNM Higher On Approval of Housing Bill

Posted on Monday, July 28, 2008 10:04 AM
Fannie Mae Ord Shs (FNM) opened at $11.95. So far today the stock has hit a low of $11.55 and a high of $12.96. FNM is now trading at $12.24, up 0.69 (5.97%). After hitting a one-year high of $70.57 in August, the stock hit a one-year low of $6.68 earlier this month. Shares of FNM are trading higher this morning after Congress passed over the weekend a bill designed to prop up the housing market. The bill also gives the Treasury Department authority to potentially spend billions of dollars in federal money to prevent the collapse of FNM and Freddie Mac (FRE). Technical indicators for FNM are bearish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating. If you’re looking for a hedged play on this stock, consider a September bull-put credit spread below the $5 range. FNM hasn’t been below $6.50 at all in the past year and has shown support just around $8.50 recently. The stock would have to fall by more than 59% to cause a problem. [LHF- Seven Summits Strategic Investments NewsBite]
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