- New Trades -
American Intl. Group - AIG - close: 46.74
We've had AIG on our watch list for a while. Back in May and June the stock appeared to top out with failed rallies at resistance near $46.50. We were expecting a correction. Then AIG produced a big bounce off its late June lows. We recently changed our entry point strategy to buy call LEAPS if AIG could close above $46.75.
Shares almost got there on Friday. AIG hit an intraday high at $46.83 and closed at $46.74. That's good enough for us. We're adding AIG as a new candidate to launch positions on Monday morning at the opening bell. More conservative traders may want to wait and see if there is any follow through higher and only buy calls if AIG can traded above Friday's high.
Please note that we are moving the stop loss up to $42.40. Our long-term target will be adjusted to $54.75.
BUY the 2014 Jan $50 call (AIG1418a50) current ask $2.41
- or -
BUY the 2015 Jan $55 call (AIG1517a55) current ask $4.15
07/14/13 AIG came within a penny of hitting our new entry trigger (closing above $46.75). We are adding it as a new play tonight. Buy calls on Monday morning. Move the stop loss up to $42.40.
07/07/13 adjust entry strategy: wait for shares to close above $46.75 and then buy calls the next day. Stop loss at $41.40. Target 55.00.
06/16/13 adjust entry strategy: move the buy-the-dip trigger to $40.00, from 38.50. Move the stop loss to $36.35 from 34.75.
Chart of AIG:
Originally listed on the Watch List: 06/01/13