AIG Traders Playing Support

A put sale is the big trade of the day in American International Group as the insurance giant holds support.

More than 10,000 of the weekly 50.50 puts expiring Nov. 1 have traded against open interest of 229. One big block of 9,211 contracts accounted for most of the activity, crossing at the bid price of $0.43.

He or she is betting that AIG will hold above $50.50 strike through the end of the week. That is a high probability bet, but the trader takes on the risk of having to buy the shares for that price regardless of how low they actually trade.

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