Option Bulls Are Banking With Citigroup
Options have been strong across the financial sector, and yesterday the activity accelerated in Citigroup.
The April calls stood out the most on OptionMonster’s tracking systems, especially the April 41s, with buyers coming in for $0.47 to $0.52. More than 9,000 contracts changed hands at that strike.
Those calls lock in the price investors must pay to buy shares in the megabank. That makes them highly leveraged to upside in the stock, but they will expire worthless if there is no rally.
Citigroup shares rose 2.45 percent to $38.08 yesterday and are up 47 percent in the last three months. Almost 227,000 options traded in the name yesterday — more than triple the normal amount.
—Najarian own C calls and shares.
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