What call activity means in Citigroup

Call trading tops the option action in Citigroup as it gives up early gains.

C is down fractionally at $34.12 after trading as high as $34.74 this morning. That was its highest level since Aug. 5, when shares collapsed from above $40.

Option volume in the name has topped 90,000 this morning, already almost its total daily average in last month. A trader sold 5,000 April 30 calls for $5.12 against open interest of 6,737, according to optionMONSTER's systems. At the same time, he or she bought 10,000 April 36 calls for $1.52.

Given the volume and stock action, it appears that the trader is selling the lower strike and rolling the position up to the higher strike. The size of the position was doubled, providing greater exposure to further upside but allowing the trader to take some profits.

Minutes earlier, an April 31/35 call spread traded 2,400 times. The volume was less than option interest at both strikes, so this was likely the closing of a bull spread as it goes almost fully in the money . (See our Education section)

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