I bot AIG 01/2009 $50 calls, and then sold 01/2008 $60 calls. I plan hold them for 3 weeks until January 2008 OE.
Here are my considerations. 1) AIG cleared itself of sub-prime shit and it is less likely to crash; 2) AIG's evaluation is low (PE=8). 3) AIG has moderate volatily; 4) 01/2009 won't depreciate very much if I hold them for 3 weeks. 5) If AIG goes down, I will switch to $55 call on the short side.
Here are my considerations. 1) AIG cleared itself of sub-prime shit and it is less likely to crash; 2) AIG's evaluation is low (PE=8). 3) AIG has moderate volatily; 4) 01/2009 won't depreciate very much if I hold them for 3 weeks. 5) If AIG goes down, I will switch to $55 call on the short side.