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Large trader sees floor in Citigroup

Chris McKhann (chris.mckhann@optionmonster.com)

The big trade so far this morning in Citigroup is a put sale even as shares fall.

optionMONSTER systems show that a trader sold 5,300 November 43 puts for the bid price of $0.30. This was done against open interest of just 183 contracts, so it is clearly a new position.

The put seller is looking for C to hold above $43 through that expiration in mid-November. The trader is also taking on the risk of having to buy shares if they are below that price. (See our Education section)

C is down 0.85 percent to $50.31, in the middle of its recent range. The mega-bank was up against resistance at $53 going into August before falling to support at $48.

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