Strategy looks for lower volatility in AIG

optionMONSTER

As American International Group continues its recent decline, one trader is looking for lower volatility in the insurance giant's shares.

optionMONSTER systems show that a trader sold 10,000 June 41 calls in one print for $0.89. This is an opening position, as this is a new expiration.  

A block of 425,000 AIG shares traded a minute later for $38.6694. The combination of stock and options is apparently creating a short-volatility play . (See our Education section)

AIG closed at $38.60, down 0.95 percent on the day. The stock traded near $40 last week but has given up ground since then. Its close of $39.58 on March 8 was the highest in two years.


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