Today, large tranches of near-term out-of-the-money (OTM) call options have traded in American International Group (AIG) stock, the $50 billion market cap insurance company. This serves to highlight how cheap the stock is now.
AIG stock is down recently and is trading at $71.67, down from $77.41 a month ago on March 21. As a result, these call options show that some investors are bullish on the stock and hope to see it rebound. On the other hand, short-sellers of these OTM calls are happy to collect the income in these short-term naked short-call or possibly covered-call plays.
