NEW BULLISH Plays
American Intl. Group - AIG - close: 35.90 change: +0.67
Stop Loss: 33.90
Current Gain/Loss: unopened
Entry on October 9 at $ xx.xx
Listed on October 8, 2012
Time Frame: exit prior to earnings on Nov. 1st
Average Daily Volume = 44 million
New Positions: Yes, see below
Why We Like It:
Financial stocks were showing relative strength last week. The rally continued for AIG today and the stock has finally broken out past major resistance near the $35.00 level.
We want to take advantage of this breakout and open bullish positions at the open tomorrow. More nimble traders may want to consider trying to wait and buy a dip in the $35.25-35.00 area if AIG provides one.
Our target is $39.75 but we'll plan on exiting prior to the early November earnings report.
FYI: The Point & Figure chart for AIG is bullish with a $42.50 target.
Suggested Position: buy AIG stock @ (the open)
- (or for more adventurous traders, try this option) -
buy the Nov $37 call (AIG1211k37) current ask $0.83