Massive base formation from 26 - 20 should allow for a 6-12 month rally to 32. High frequency trading at 24 - 23 signals strong support at that level. US Gov't investment is a negative but it is widely known and therefore, discounted.
I view $24-$23 as a level that is the lowest risk price zone to buy shares, but I doubt AIG will get back to that price zone. Therefore, I suggest selling $25 strike puts and $24 strike puts against cash holdings for 3-6-9 months to generate returns. Keep in mind that $29 was the price for a massive secondary stock offering last year in May and is therefore key resistance that will take a few attempts to push through.
By: Technical Tim, Friday, Jan 20, 2012 10:41AM EST
I view $24-$23 as a level that is the lowest risk price zone to buy shares, but I doubt AIG will get back to that price zone. Therefore, I suggest selling $25 strike puts and $24 strike puts against cash holdings for 3-6-9 months to generate returns. Keep in mind that $29 was the price for a massive secondary stock offering last year in May and is therefore key resistance that will take a few attempts to push through.
By: Technical Tim, Friday, Jan 20, 2012 10:41AM EST
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com