Cramer: American International Group a buy under $69

American International Group, Inc. (NYSE: AIG) opened at $69.72. So far today the stock has hit a low of $69.43 and a high of $69.89. As of 1:00, AIG is trading at $69.75, down $0.04 (-0.05%).

After hitting a one-year high of $72.97 in May, the stock has trickled slightly downward over the past four weeks. Jim Cramer highlighted this stock for investors to watch for a buying opportunity. Cramer thinks this stock should be bought if it dips under $69 in the next few days. Technical indicators for AIG are bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $65 range. A bull-put credit spread is an options position that combines the purchase and sale of call options to hedge risk and leverage returns. For this particular trade, we will make a 4.2% return in just one month as long as AIG is above $65 at August expiration. AIG would have to fall by more than 6% before we would start to lose money.

AIG hasn't been below $65 since September and has shown support around $69 recently. This trade could be risky if the company's earnings (due out in mid-August) disappoint, but even if that happens, it looks like this position could be protected the strong support the stock found just around $67 back in April.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: At publication time, Brent neither owns nor controls positions in AIG.