A bearishly driven options trader is dismissing the fact that American International Group, Inc.
I hope this guy looses hit shirt!!!!
A bearishly driven options trader is dismissing the fact that American International Group, Inc. (NYSE:AIG - 36.82) has gained almost 59% in 2012. This speculator -- who bought a sizable bear put spread in the insurer on Wednesday -- also isn't afraid that the stock just pegged another new annual peak, notching its highest intraday level since early April 2011.
Put volume was roughly triple what is typically expected in the AIG option pits yesterday, and this large bearish spread is responsible for about 40% of it. Two blocks of 13,550 contracts changed hands as the January 2013 32-strike puts were sold for the bid price of $0.41 per contract while the January 2013 37-strike puts traded at the ask price at $1.87 per contract, suggesting they were bought to open. The resultant net debit for the out-of-the-money spread was $1.46.