Scott Nations Suggests An Option Strategy In Citigroup (C)

CNBC Options Action's Scott Nations suggested on the show that investors should consider an options strategy in Citigroup Inc. C. He said that he the banks might move sharply soon, but he is not sure in which direction, and that is why he wants to buy the July 38 straddle in Citigroup (C). Specifically, Scott Nations wants to buy the July 38 call for $1.50, and he also wants to buy the July 38 put for $1.50. This trading structure would cost him $3, and Citigroup (C) has to drop below $35, or jump above $41 for this trade to be profitable. Citigroup Inc. (C) fell 0.37% today, and it closed at $38.16.