Nevertheless, option players continue to load up on bullish bets. On Monday, traders on the International Securities Exchange (ISE) bought to open 1,173 calls, compared to 20 puts. The light put volume is understandable, considering AIG's near-rock-bottom perch on the charts, but it's harder to grasp why speculative investors think this beaten-down insurer is poised to rally.
The situation grows even more mind-boggling when looking back at the past 2 weeks' worth of data from the ISE. AIG has racked up a 10-day call/put ratio of 77.89 on the exchange, dwarfing Monday's call/put ratio of 58.65. The current 10-day reading ranks just 7 percentage points from an annual peak of optimism.
In the front-month series, massive call accumulations are docked at the 2.50, 3.00, 4.00, and 5.00 strikes. The January 2009 2.50 call is home to peak call open interest of 52,607 contracts. This build-up of bullish bets could exert options-related resistance as expiration draws closer -- but, since this option is out of the money by roughly 47%, AIG may not even climb high enough to challenge this region during the short term.
keine Handelsaufforderung - nur meine bescheidene Meinung :-) |