Swing Trade Idea (AIG) – June 1, 2023
OptionsPlay’s bearish trade for Thursday, June 1st is American International Group Inc. (AIG). AIG is part of the Financial Sector, which has performed at -3.99% with AIG following suit at -0.49% over the same period, as both encountered a level of resistance.
AIG is pulling back from a key level of around $57 to break below an uptrend channel. As the Relative Strength is 3 (out of 10) and the strength continues to decline, we believe that AIG will not trade higher over the duration of this trade. The next support is at around $50.
As a stop loss, if AIG were to trade above $56 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $2.36.