American International Group Inc Corp (AIG) $26.80 +7.72%

| March 4, 2010 | 0 Comments More

Volatility in AIG shares continues. The stock has been rallying today, up $2.00 to $26.88 on Reuters reports of a legal settlement in a fair lending lawsuit. AIG took a 10 percent hit on worse than expected earnings on Friday, Feb 26 and then saw a bounce Monday morning after announcing plans to sell its Asian life insurance biz to UK’s Prudential PLC. However, the stock suffered losses Tuesday and Wednesday and, even after today’s advance, remains below the levels seen prior to the post-earnings drop. Meanwhile, in the options market, trading is brisk. 28K calls and 15K puts traded. March calls with strike prices ranging from 26 to 32 are the most actives, as short-term players jockey for position in anticipation of AIG’s next move.

Category: All Stocks, Insurance, Mid Cap Stocks

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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.