Bulls Take Bank of America, Citigroup to the Bank
"Fast Money" Contributor
Traders turned bullish on Bank of America and Citigroup Monday.
OptionMonster’s systems yesterday detected early buying in Bank of America’s weekly 9 calls, which expire this Friday, for $0.17 and $0.18. Traders then made additional short-term bets a little while later in Citi, buying its weekly 34 calls for $0.37 to $0.41.
Calls lock in the price investors must pay for the stock, so they can generate major leverage in a hurry if these banks move in the right direction. But if the stocks don’t rally, those options will expire worthless.
Citi shares fell 2.36 percent to $33.97 yesterday, coming off its session lows as the options were bought. Total calls in the name outnumbered puts by 77,000 to 53,000.
Bank of America shares attempted to rebound, but finished near its lows, down 3.25 percent to $8.93.
—Najarian owns C shares and BAC calls.
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