Buffett in talks with AIG 11 months ago at $32.

Discussion in 'Stocks' started by wilburbear, Aug 20, 2009.

  1. A huge, huge shortseller bought August calls to hedge short stock on August 6th - the first day it went past $26.

    The calls expire out of the money tomorrow, with AIG under $40, leaving the shortseller naked short.

    Stock now $2 (old basis). Buffett interested in something here at $32 (old basis). How long will competing parties eye each other at the starting line before expressing interest?

    Any comment by Buffett this weekend would leave shorts in a panic to cover on Monday. Short squeeze should develop on the expiring Aug. calls alone.

  2. AIG percolating near yesterday's high of 35.