Citigroup put buying follows downtrend
Traders positioning for more possible declines in Citigroup.
optionMONSTER's monitoring program shows that 10,000 Weekly 41 puts expiring on July 1 were purchased for $1.16 to $1.23. Volume was more than 360 times open interest at the strike, which indicates new money was put to work.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
C is off 1.5 percent to $41.38 in morning trading and is down 8 percent in the last week. The banking giant's last quarterly report on April 15 was bullish, and its next earnings numbers are scheduled for release before the market opens on July 15.
Overall option volume in the name is about 5 times its daily average so far today. Puts outumber calls by more than 2 to 1.
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