AIG Long Put Strategy
AIG (American International Group, Inc.), in the Financial Services sector, (Insurance - Diversified industry), listed on NYSE.
American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. The company's General Insurance segment provides general liability, environmental, commercial automobile liability, workers' compensation, casualty, and crisis management insurance products; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, crop, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officers, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance. In addition, this segment offers personal auto and property insurance, such as auto, homeowners, umbrella, yacht, fine art, and collections; voluntary and sponsor-paid personal accident; supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, index and fixed annuities, and retail mutual funds; and financial planning and advisory services; record-keeping, plan administrative, and compliance services; and term life and universal life insurance. It also provides stable value wrap products, and structured settlement and pension risk transfer annuities; and corporate- and bank-owned life insurance and guaranteed investment contracts.
AIG (American International Group, Inc.) trades in the Financial Services sector, specifically Insurance - Diversified, with a market capitalization of approximately $40.18B, a trailing P/E of 12.90, a beta of 0.54 versus the broader market, a 52-week range of 71.25-87.46, average daily share volume of 5.1M, a public-listing history dating back to 1973, approximately 22K full-time employees. These structural characteristics shape how AIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates AIG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AIG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on AIG?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current AIG snapshot
As of May 15, 2026, spot at $76.13, ATM IV 23.01%, IV rank 32.08%, expected move 6.60%. The long put on AIG below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this long put structure on AIG specifically: AIG IV at 23.01% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 6.60% (roughly $5.02 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIG should anchor to the underlying notional of $76.13 per share and to the trader's directional view on AIG stock.
AIG long put setup
The AIG long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIG near $76.13, the first option leg uses a $76.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIG chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $76.00 | $1.80 |
AIG long put risk and reward
- Net Premium / Debit
- -$180.00
- Max Profit (per contract)
- $7,419.00
- Max Loss (per contract)
- -$180.00
- Breakeven(s)
- $74.20
- Risk / Reward Ratio
- 41.217
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
AIG long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AIG. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$7,419.00 |
| $16.84 | -77.9% | +$5,735.83 |
| $33.67 | -55.8% | +$4,052.67 |
| $50.50 | -33.7% | +$2,369.50 |
| $67.34 | -11.6% | +$686.34 |
| $84.17 | +10.6% | -$180.00 |
| $101.00 | +32.7% | -$180.00 |
| $117.83 | +54.8% | -$180.00 |
| $134.66 | +76.9% | -$180.00 |
| $151.49 | +99.0% | -$180.00 |
When traders use long put on AIG
Long puts on AIG hedge an existing long AIG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AIG exposure being hedged.
AIG thesis for this long put
The market-implied 1-standard-deviation range for AIG extends from approximately $71.11 on the downside to $81.15 on the upside. A AIG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AIG position with one put per 100 shares held. Current AIG IV rank near 32.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on AIG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIG-specific events.
AIG long put positions are structurally bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AIG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIG alongside the broader basket even when AIG-specific fundamentals are unchanged. Long-premium structures like a long put on AIG are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current AIG chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AIG?
- A long put on AIG is the long put strategy applied to AIG (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With AIG stock trading near $76.13, the strikes shown on this page are snapped to the nearest listed AIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIG long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the AIG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.01%), the computed maximum profit is $7,419.00 per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIG long put?
- The breakeven for the AIG long put priced on this page is roughly $74.20 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AIG market-implied 1-standard-deviation expected move is approximately 6.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on AIG?
- Long puts on AIG hedge an existing long AIG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AIG exposure being hedged.
- How does current AIG implied volatility affect this long put?
- AIG ATM IV is at 23.01% with IV rank near 32.08%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.