Long-term play is bullish on Citigroup

optionMONSTER

A long-term strategy is looking for gains in Citigroup with shares near their March highs.

optionMONSTER systems show that a January 2015 call spread tops today's option activity. A trader bought 5,000 of the 65 calls for the ask price of $1.47 and sold the same number of the 70 calls for their bid price of $0.88. The volume was more than open interest at both strikes, so this was a new opening position.

This vertical spread cost just $0.59 to open, which is the amount at risk if C remains below $65 through that expiration. The maximum gain of $4.41 would be realized if shares are above $70 at that time. (See our Education section)

C is up 0.76 percent to $46.21 in afternoon trading. The stock lost ground in the previous four sessions but is not far off the March high of $47.92. Shares were last above the $70 level at the start of 2009.

Total volume in Citigroup is already above 49,000, nearly matching its full-session average for the last month.

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