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Schaeffer's Option Blog: American International Group, Inc. (AIG) CEO Comments Captivate Call Traders

Tue. June 30, 2009; Posted: 02:22 PM
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CINCINNATI, Jun 30, 2009 (BUSINESS WIRE) -- AIG | Quote | Chart | News | PowerRating -- Option traders have centered on American International Group, Inc. (NYSE: AIG | Quote | Chart | News | PowerRating) today, in the wake of comments made at the company's annual meeting. More specifically, CEO Edward Liddy said there was an "excellent chance" the insurer will be able to repay government loans, calling the company "far more stable than it was a few months ago." However, the firm warned that it could face unrealized losses on a portfolio of derivatives of AIG Financial Products Corp., should the credit markets continue to deteriorate.

According to data from WhatsTrading.com, AIG has already seen roughly 14,000 calls change hands today, nearly 11 times its average intraday volume of fewer than 1,250 contracts. The bullish bias contradicts the sentiment among short-term speculators, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.60 stands in the 69th annual percentile. In other words, near-term traders have been more skeptically skewed toward AIG only 31% of the time during the past year.

To continue reading this article, click here: http://www.schaeffersresearch.com/marketcenters/optionscenter/default1.aspx?id=93845&source=businesswire

SOURCE: Schaeffer's Investment Research

Schaeffer's Investment Research 
Andrea Kramer, 513-589-3800 
akramer@sir-inc.com
For full details on American Internat Group (AIG) click here. American Internat Group (AIG) has Short Term PowerRatings of 5. Details on American Internat Group (AIG) Short Term PowerRatings is available at This Link.

    


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