Stock Trading

So I wake up today and see AIG open at $19.65 a share which is a 1,600% price increase on the previous closing price at $1.14  . Okay so a lot of people seem to be confused on what a reverse split is.  A Reverse Split is a reduction in the number of outstanding shares in a company that increase the par value of its stock price or earnings per share (EPS). So lets say if a company does a 1 for 2 reverse stock split it means you only get half of the amount of shares at a higher price value meaning you won’t get an increase in net worth but will effect on how the stock is being traded when it reaches the higher par value is it will with AIG. A lot of different investors are aiming to actually turn this into a lucrative short position which may be the smartest move as of right now. AIG cold of done this stock reverse split so they wouldn’t end up being delisted.

AIG Trading Strategy – So in these times right now I think one of the smartest things to do with AIG right now would be to watch this stock to see how it does for the next couple of trading days but I honestly think if you want to be a little more riskier for a copious amount of gains you could put a sell short position or put the stock if you trade it in derivatives. So AIG is a total sell short right now, please get rid of it! This is a bad sign for the company cause they want to make this company / stock look more valuable when in fact with the financial status of the finacial companies and market this is a bad sign right now and AIG will fall in stock price.  Short Sell or buy a put at a 15, 12 or 10, on the strike price .

The the best possible stock market tips for this stock, AIG would to be to sell short as the stock is right now being traded at $18.86 a share at 12:00 PM EST right now.  It already has a -4.40 as of right now which is a 19% increase if you sold short already from when it opened. Watch AIG closely and take a look at the volume and what people are talking about with this stock.