Ambac Financial (ABK) NewsBite - Ambac Plunges on Lehman Trouble

Thursday, September 11, 2008 11:51 AM EDT

Ambac Financial (NYSE: ABK) opened at $6.50. So far today, the stock has hit a low of $6.01 and a high of $6.59. ABK is now trading at $6.36, down $0.84 (-11.67%). The stock hit its 52-Week high of $73.20 in October and set its 52-Week low of $1.04 in July. Shares of Ambac Financial have been plunging with other financial companies dragged down by Lehman Brothers Holdings Inc. (LEH) whose shares tumbles as investors and analysts weighed in with their disappointment in the company's survival plan unveiled yesterday. Technical indicators for the stock are neutral and S&P gives ABK a neutral 3 STARS (out of 5) hold ranking. If you are looking for a hedged play on ABK the stock seems like it could be a candidate for an October out-of-the-money bear-call credit spread above the 10 range. [ABR-Seven Summits Strategic Investments NewsBite]

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