4 Trade Ideas for AIG: Bonus Idea

• Posted by Greg Harmon
• on January 17th, 2023

Here is your Bonus Idea with links to the full Top Ten:

AIG, $AIG, comes into the week ready to test resistance with the move back to the post pandemic highs in sight. The RSI is holding in the bullish zone with the MACD drifting lower but positive. The Bollinger Bands are drifting to the upside to allow continuation higher. There is resistance at 64.75 and then 65.75 and 67.25 (2017) then 80 (2008) and 95 before 125. Support lower comes at 63.30 and 62.25 then 61.50. Short interest is low under 1%. The stock pays a dividend with a 1.99% annual yield and has traded ex-dividend since December 14th.

The company is expected to report earnings next on February 14th. The January options chain shows the biggest open interest at the 60 strike on the put side and large amounts at $2.50 increments from 57.50 to 65. The February chain has biggest open interest at the 57.50 strike on the put side and the 65 strike on the call side. In the March chain the biggest open interest is at the 52.50 put and it is spread from 57.50 to 70 on the call side.

AIG, Ticker: $AIG

Trade Idea 1: Buy the stock on a move over 64.75 with a stop at 61.50.

Trade Idea 2: Buy the stock on a move over 64.75 and add a February 62.50/57.50 Put Spread ($1.05) while selling the March 70 Calls (55 cents).

Trade Idea 3: Buy the February/March 67.50 Call Calendar (70 cents).

Trade Idea 4: Buy the March 60/65/67.50 Call Spread Risk Reversal (30 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into January options expiration, saw equity markets showed strength, rising close to a test of important resistance.

Elsewhere look for Gold to continue to move higher while Crude Oil consolidates in a tightening range. The US Dollar Index continues to move to the downside while US Treasuries come closer to an uptrend reversal. The Shanghai Composite looks to possibly shift to an uptrend while Emerging Markets confirm an uptrend.

The Volatility Index looks to remain normal and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the shorter timeframe. On the longer timeframe both the QQQ and SPY are close to testing trend resistance with the IWM on the verge of confirming a trend reversal higher if it can continue through resistance. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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