Option traders have centered on American International Group, Inc.
(NYSE: AIG) today, in the wake of comments made at the company's annual
meeting. More specifically, CEO Edward Liddy said there was an
"excellent chance" the insurer will be able to repay government loans,
calling the company "far more stable than it was a few months ago."
However, the firm warned that it could face unrealized losses on a
portfolio of derivatives of AIG Financial Products Corp., should the
credit markets continue to deteriorate.
According to data from WhatsTrading.com, AIG has already seen roughly
14,000 calls change hands today, nearly 11 times its average intraday
volume of fewer than 1,250 contracts. The bullish bias contradicts the
sentiment among short-term speculators, as the stock's Schaeffer's
put/call open interest ratio (SOIR) of 0.60 stands in the 69th annual
percentile. In other words, near-term traders have been more skeptically
skewed toward AIG only 31% of the time during the past year.