AIG is up 6 cents to $14.63 and more than 27 percent since Thursday. Shares are likely benefiting from short-covering, as the stock became easier to borrow after a reverse stock split on July 1 and short sellers have been aggressively taking positions in antipation of future woes. In the options market, trading remains active, with 72K puts and 43K calls traded. July 14 puts are the most actives, with 13.4K traded and some opening put buyers apparently taking fresh positions. Implied volatility is lower, however; down to 163, from about 170 late yesterday.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.