Bulls target a quick move in Citigroup
The financials were grabbing some attention in the option market yesterday, especially Citigroup.
optionMONSTER's Heat Seeker system detected unusual activity in the name as traders looked for short-term gains this week. The August 51 calls were the busiest, with blocks going for $0.38 to $0.50. The August 50s, 52s, and 52.50s followed, each with more than 4,300 contracts trading.
These long calls lock in the price where shares can be purchased in the megabank. If they're right about a rally by this Friday, the contracts provide some significant leverage in a hurry. (See our Education section)
C fell 0.82 percent to $40.90 in the session but is up 29 percent so far this year. Most of that move occurred by late May, and shares have been drifting lower since.
Total option volume in the name was almost twice its daily average, with calls outnumbering puts by more than 2 to 1.
Disclosure: I own C calls
(A version of this post appeared on InsideOptions Pro yesterday.)
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