Fannie Mae (FNM) NewsBite - Fannie Mae Tumbles on FRE Trouble

Posted on Wednesday, August 06, 2008 10:51 AM

Fannie Mae (NYSE: FNM) opened at $11.57. So far today, the stock has hit a low of $11.38 and a high of $12.24. FNM is now trading at $11.95, down $1.65 (-12.13%). The stock hit its 52-Week high of $70.57 in August and set its 52-Week low of $6.68 in July. Shares of Fannie Mae have been tumbling after Freddie Mac (FRE) reported bigger than expected losses, slashed its dividend and warned that new legislation and regulation could hurt its ability to do business. Technical indicators for the stock are bearish and S&P gives FNM a negative 2 STARS (out of 5) sell ranking. If you are looking for a hedged play on FNM the stock seems like it could be a candidate for an August out-of-the-money bear-call credit spread above the 15 range. [ABR-Seven Summits Strategic Investments NewsBite]