4 Trade Ideas for AIG: Bonus Idea

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

AIG, $AIG, comes into the week approaching a key resistance area. It has an RSI rising into the bullish zone with a MACD crossing up and about to turn positive. There is resistance at 79.50 through 80.25 and then at 81.25 and 82 before a gap to fill at 83.50 followed by 84.50 and 86. Support lower is at 77 and 76 followed by 75. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 2.54% and will trade ex-dividend June 15th.

The company is expected to report earnings next on August 4th. The May options chain has biggest open interest at the 80 strike put and the 85 strike call. In the June chain open interest is biggest at the 75 put then the 65 put strikes and on the call side at the 80 strike. In the July chain it is just getting started and has very low open interest. The August chain, which covers the next earnings report, also has low open interest but spread from the 72.50 to 60 strikes on the put side and from the 75 to the 90 strike on the call side.

AIG, Ticker: $AIG

Trade Idea 1: Buy the stock on a move over 80.25 with a stop at 77.25.

Trade Idea 2: Buy the stock on a move over 80.25 and add a June 77.50/72.50 Put Spread ($1.40) while also selling the July 85 Calls ($1.00).

Trade Idea 3: Buy the June/July 85 Call Calendar (75 cents) and sell the June 72.50 Put (60 cents).

Trade Idea 4: Buy the June 72.50/80/82.50 Call Spread Risk Reversal (45 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 with the month of April, including Chairman Powell’s last FOMC meeting, in the books saw equities continue to show strength driving to new all-time highs for the third week in a row.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in broad consolidation near $100/bbl. The US Dollar Index looks to continue to drift in consolidation, this time to the downside, while US Treasuries continue to hold over 16 month support like nothing is happening. The Shanghai Composite looks to continue a short term uptrend closing in on the 2025 top and a new 11 year high while Emerging Markets push to new highs in their uptrend.

The Volatility Index looks to continue in the normal zone removing all the pressure on equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 4th positive week moving to new highs. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong but with overheated momentum and may need a pause. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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