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Option Bulls Are Banking With Citigroup

Wednesday, 21 Mar 2012 | 6:15 AM ET
Citigroup Building
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Citigroup Building

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.

Additional News: Appeals Court Gives SEC-Citigroup Deal New Life

Additional Views: US Bank Stocks Set to Surge 25% in 2012: Dick Bove

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com.

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