More Bullish Bets On Citi After Warren Buffett Buys Large Stake

Through his company Berkshire Hathaway Inc (NYSE: BRK-A), legendary investor Warren Buffett has purchased 55.2 million shares of Citigroup Inc’s C shares, comprising around 2.8% of the company’s outstanding shares, for close to $3 billion.

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On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that the stock traded over 2 times its average daily call volume on Tuesday, comprising more than 140,000 contracts.

Check out other financial stocks making big moves in the premarket.

There were buyers of 9,336 of the June 50 calls at $2.78 per contract on average, Khouw mentioned. Traders see the stock rising by at least 3% by June expiration, he added.

C Price Action: Shares of Citigroup spiked 7.56% to close trading at $51.05 on Tuesday, and rose another 0.29% during premarket on Wednesday, according to Benzinga Pro.