Reportedly, former American International Group (AIG) lead man Maurice Greenberg (called "Hank" by most and the "Gangster of Love" by yours truly) has agreed to a staged sale of his AIG shares to UBS (UBS).

On Friday, Starr International (Greenberg's investment vehicle) issued a filing with the SEC stating that it will sell as many as 10 million shares of Greenberg's former firm in four blocks of 2.5 million shares. The price tag for the deal comes in at $278 million. The way the deal is structured is known as a variable prepaid forward sale.

Maurice Greenberg, the former chairman of American International Group (NYSE: AIG), testified before the House Oversight and Government Reform Committee Thursday that the company should have been allowed to go into bankruptcy, and is unlikely to pay off taxpayers under the current plan.

"It is clear that the current approach has not worked and cannot work in today's environment. A.I.G., in my judgment, in the current plan, will not pay the taxpayers back," he told lawmakers.

He also said that an AIG bankruptcy would not have been as disastrous as many had feared. "There would have been a ripple, but it wouldn't have been catastrophic," Mr. Greenberg said. "I don't think it would have been disastrous."

AIG (NYSE: AIG) closed at $61.35 Thursday.

Maurice Greenberg -- former Chairman and CEO of AIG -- and several other parties filed a 13D on November 2, indicating the group is considering strategic alternatives to maximize their holdings. AIG December option implied volatility of 36 is above its 26-week average of 29 according to Track Data, suggest larger price fluctuations.

Palm (NASDAQ: PALM) closed at $6.59 Thursday.

Bank of America says: "PALM negatively pre-announces again. After disappointing guidance last quarter, PALM fails to deliver, revising estimates down for 2QF08. We stay Neutral and lower our target from $15 to $5." PALM over all option implied volatility of 71 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

AIG (NYSE: AIG), a holding company engaged in insurance and insurance related activities, closed at $59.12.

Maurice Greenberg (former Chairman and CEO of AIG) and several other parties filed a 13D indicating the group is considering strategic alternatives to maximize their holdings.

Goldman Sachs says, "We believe that it signals AIG's largest shareholder group (13%0 also believe that the shares remain very undervalued at current prices."

AIG November option implied volatility is at 70, December is at 49, above its 26-week average of 25 according to Track Data, suggest larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.