Citigroup (C) NewsBite - UBS, JP Morgan Writedowns Pull Down Citigroup

Posted on Tuesday, August 12, 2008 10:04 AM

Citigroup (NYSE: C) opened at $19.69. So far today, the stock has hit a low of $19.27 and a high of $19.71. C is now trading at $19.46, down $0.36 (-1.81%). Over the last 52 weeks the stock has ranged from a low of $14.01 to a high of $49.90. C shares are declining with other bank stocks this morning after UBS (UBS) and JP Morgan Chase (JPM) announced sizeable writedowns this morning, triggering investors' worries about the beleaguered financial sector. JPM announced it expects to write down $1.5 billion in mortgage-backed securities during the third quarter, while UBS said it wrote down $5.1 billion during the second quarter. Technical indicators for the stock are neutral and S&P gives C a neutral 3 STARS (out of 5) hold ranking. If you are looking for a hedged play on C the stock seems like it could be a candidate for a September out-of-the-money bear-call credit spread above the 22.5 range. [ABR-Seven Summits Strategic Investments NewsBite]