By: Scott Redler
AIG has been all over our radar in recent weeks, as it has looked ready to explode at any moment. We recommended it at two separate times–April 5th through 34 and April 21st through 42. This stock is a dream and a nightmare for traders, but as long as you can keep your risk small you can get great risk-vs.-reward when trading AIG.
Recently we have been expecting that explosive move but the stock has just been steadily climbing higher. Marc’s profit objective from earlier this week was 46-48, but I am going to be slightly more conservative and begin to unwind my position here around 45. AIG is a prime example of the need for a tier system. Scale in and out of the trade to limit your risk.
