Fannie Mae (NYSE: FNM) NewsBite - Fannie Mae Plunges on Accelerating Bailout Fears

Posted on Wednesday, August 20, 2008 2:15 PM

Fannie Mae (NYSE: FNM) hit a new 52-Week low of $4.74 so far today. Currently the stock is down $1.14 (-18.97%) to $4.87 on 127,829,232 shares traded. Today's low is down $65.70 from a 52-Week high of $70.57. Fannie Mae stock has been showing support around $5.23 and resistance in the $7.05 range. Technical indicators for the stock are neutral and S&P gives FNM a neutral 3 STARS (out of 5) hold ranking. Shares of Fannie Mae continued their plunge today as investors became increasingly convinced that the stocks will drop to zero if the government bails out the troubled companies. If you are looking for a hedged play on FNM the stock seems like it could be a candidate for a September out-of-the-money bear-call credit spread above the 8 range. [ABR-Seven Summits Strategic Investments NewsBite]