4 Trade Ideas for AIG: Bonus Idea

• Posted by Greg Harmon
• on May 19th, 2025

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

AIG, $AIG, comes into the week at resistance in an ascending triangle. The target move on a break higher would be to 92.50. The Bollinger Bands® are shifted to the upside to allow a move. The RSI is coiling just under the bullish zone with the MACD positive and rising. There is resistance at 84.50 and 86 then 87.75 and back to 2008 at 94 and 125 before 208. Support lower is at 83 and 81.50. Short interest is low at 1.6%. The stock pays a dividend with an annual yield of 2.13% and will trade ex-dividend starting June 13th.

The company is expected to report earnings next on July 29th. The June options chain shows the biggest open interest at 70 then 65 strikes on the put side. On the call side it is also biggest at 70 then 85. In the July chain there is little open interest as of yet. Finally, the August chain has biggest open interest at the 82.50 strike on both the put and call sides.

AIG, Ticker: $AIG

Trade Idea 1: Buy the stock on a move over 85 with a stop at 81.50.

Trade Idea 2: Buy the stock on a move over 85 and add a June 82.50/77.50 Put Spread ($1.05) while selling the August 92.50 Calls (85 cents).

Trade Idea 3: Buy the July/August 90 Call Calendar ($1.05) while selling the July 77.50 Puts (80 cents).

Trade Idea 4: Buy the August 77.50/87.50/92.50 Call Spread Risk Reversal (40 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 May Options Expiration in the books, saw equity markets display strength gapping up and then running higher.

Elsewhere look for Gold to continue its digestion in the uptrend while Crude Oil continues to trend lower. The US Dollar Index continues a short term move to the upside while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue in consolidation while Emerging Markets are on the cusp of breaking consolidate to the upside.

The Volatility Index looks to continue to drop and now is in the normal range, making the path easier for equity markets to the upside. Their charts show short term strength on both timeframes. On the shorter timeframe the IWM, the QQQ and the SPY are breaking higher with a shift to bullish momentum. On the longer timeframe the classic “V” recovery continues to build in all 3 Index ETFs as the SPY and QQQ close in on their all-time highs. 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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