AIG base formation
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
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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
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.