Anyone pick up the cheap calls on AIG? Yesterday I said this:
And the options on AIG are still cheap, especially going into earnings. The August 30's are a bit more than a buck, and the August 32's are at .50. The stock doesn't have any resistance until 34. AIG said they didn't need any more capital after they sold 197 million shares at 38 on May 16 and I'm sure some of those underwater buyers would part with their shares at a 10% loss. So I'm saying 34ish is short term resistance though the chart indicates higher.
http://aaronandmoses.blogspot.com/2008/07/derivative-plays-on-bac.html
What happened today? They jammed the premium on the calls. The 30's closed at 2.37 and the 32's closed at 1.37. They opened at $1.16 and at .51 cents. 100% and 150% on your money in a day, and looking to go higher.
Free money if you wanted it!
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