4 Trade Ideas for AIG: Bonus Idea

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

AIG, $AIG, started lower in February and accelerated to a bottom in late March. Since then it has consolidated against resistance but with tightening support, creating an ascending triangle. Friday it ended back at resistance and over the 50 day SMA for the first time since February. A break of the triangle higher would give a target to 37.20.

The RSI is rising toward a move into the bullish zone with the MACD moving up and about to turn positive. There is resistance at 27.75 and 29.55 then 32.30 and 37.20 before 41.25. Support lower comes at 23 and 22.15. Short interest is low at 1.6%. The stock pays a dividend with an annual yield of 4.63% and will begin to trade ex-dividend on June 12th. The company is expected to report earnings next on August 5th.

The May options chains shows the majority of open interest at the 26 strike on both the put and call side. In June it is biggest at the 30 put and the 25 call. July options are just getting going. The August options, covering the earnings report, show spikes in open interest at the 26 and 22 put, but much bigger at the 28 and 31 call.

AIG, Ticker: $AIG

Trade Idea 1: Buy the stock on a move over 27.75 with a stop at 26.75.

Trade Idea 2: Buy the stock on a move over 27.75 and add a June 26/23 Put Spread ($1.00) while selling the August 33 Put ($96 cents) to pay for it.

Trade Idea 3: Buy the June/august 30 Call Calendar ($1.45) and sell the June 23 Puts (57 cents).

Trade Idea 4: Buy the August 21/29/31 Call Spread Risk Reversal (5 cents).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 the May options expiration week, sees equity markets showed great strength in the face of historically horrible economic data.

Elsewhere look for Gold consolidate at highs while Crude Oil consolidates the short term move higher. The US Dollar Index continues to tighten the range while US Treasuries pullback. The Shanghai Composite continues to consolidate under resistance in a broad range while Emerging Markets consolidate under long term resistance.

The Volatility Index looks to continue to move lower making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY are at potential resistance points with the IWM having the easiest path higher. 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.

blog comments powered by Disqus
Dragonfly Caps Blog