There has been a huge jump in options activity today in American International Group (NYSE: AIG). For instance August 10, 2018 puts with a strike price of $52.50 have traded over 3,000 contracts when it started the day with an open interest of only 150.
American International Group is scheduled to report earnings after the close today. According to Zachs eight analysts are covering the stock with a combined consensus forecast of $1.19 per share. AIG has missed consensus earnings on its last two quarterly earnings reports and that may be why there is such unusual options activity in it today.
There have been large moves in individual stocks recently even though overall stock market volatility as measured by the VIX remains low. Shares of WYNN and MGM fell hard yesterday for instance and WYNN is down another six percent today.
Shares of AIG have been trading in a range since may with $56.00 as resistance and $52.00 as support. It would be a surprise if the stock were to make a huge move out of this range at the moment, but some options traders are betting that it can. Overall implied volatility for AIG options are trading at well over 30%. AIG is trading with a P/E of 166.29 and pays a 2.31% dividend.