American International Group, Inc. (AIG)

[Porgie Tirebiter]

I had sold $54.50 calls at the start of the month because I really thought AIG was kind of temporarily overbought. At expiration on the 13th the calls were underwater so I went ahead and let all my shares go at $54.50 and then promptly sold $54.50 puts the next Monday to get back in.

Of course, then I have to sit and watch AIG go to $55.70 without me, but stocks go up and stocks go down... Can't worry about that.

Anyway, when I posted that I had just re-purchased half my shares outright at $5.36 (14¢ less than I sold them for) and now I needed to either spend money to cover the puts or have the stock do it for me by going above $54.50 which it co-operated and did.

I ended the day in a covered short strangle. Sold July 11 calls for 35¢ and puts for 36¢ for a net of 71¢.