IAG – Recovery Trade?

IAG:ASX is a potential counter-trend recovery trade that’s now on our radar. We add this to the list which also includes CIM & A2M.

6/5 Since writing the above post IAG has continued to move higher. Short-term investors may stick with the position as long as the price activity remains above the 10-day average.

IAG – Algo Buy Signal

Insurance Australia Group is now showing an Algo Engine buy signal and remains a long term holding in our ASX 100 model portfolio.

We see value emerging and consider the $7.50 price range as support and expect buying interest to remain solid.

Look for a move higher into the $8.00+ range and then sell covered call options to enhance the income return.

For more detail on the option strategy, please call our office on 1300 614 002.



IAG – Finding Buying Support

IAG is under Algo Engine buy conditions and we see support building near $7.10.

The company will report half year earnings on the 6th of February. The market is looking for NPAT to be around $260mn.

We suggest buying IAG and selling an out of the money call option to enhance the return.

IAG goes ex-div 14 cents on the 20th of February.

Buy IAG At Current Levels

In our Opportunities in Review webinar series, we’be been suggesting IAG as a buy below $7.00.

A recent broker note estimates that IAG will have a further $600 million to spend on shareholders, which could come in the form of a $300 million special dividend and $300 million share buyback.

Look for a rally to $7.50 and sell covered call options.