All Eyes on Citigroup (NYSE:C)
All eyes are on Citigroup (NYSE:C) this morning, which has just begun to break through the $5.00 mark. This is an important psychological mark for investors as it seems that one of the worst offenders and symbols of last year’s crash is now back in institutional trading territory. The only other stocks that would surprise me and most of the Street to be above $5.00 would be Fannie and Freddie. (At $5.00, stocks can now begin to garner mutual fund and other large, institutional monies; most funds have stipulations that managers cannot purchase assets under $5.)
Options action has been exploding in Citi for weeks, but yesterday and today have been off the charts. Nearly every single slot on my screen is filled with Citi options that are leading in volume. Yesterday, the theme was call buying across all months on the $5 strike and today the action is continuing; April, May, June, September, and January 2011 are all finding buyers on the $5 strike and some on the $7 strike. Despite the trashy reputation that the stock has on the Street, everyone seems to want a piece of it.
I have and continue to be long the Jan 2011 $5 & $7.50 calls and short the Jan 2011 $ & $5 puts.
Michael J. Zerinskas
Benzinga
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