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As American International Group pulls back today, the bulls are stepping in with a hugely leveraged trade.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 15,000 January 32 calls for $3.90. Equal-sized blocks were sold in the January 28 puts for $2.45 and the January 40 calls for $1.42.

The trade cost just $0.03 and will earn more than 26,000 percent if the shares climb to $40 by expiration. It also stands to lose money if the insurance stock closes below $28.

AIG is down 2.83 percent to $31.90 in afternoon trading, losing ground after the federal government said it would sell $5 billion of shares in the company this morning. The stock has been trending higher all year as earnings improve and management takes steps to rebound from the effects of the 2008 market crash, when it lost more than 90 percent of its value.

The shares have fought their way back from a drop of more than 7 percent early in the session. Overall option volume in AIG is nearly 5 times its daily average so far today.

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