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All Eyes on Citigroup (NYSE:C)
04/15/10 by Guest Contributor
Filed under Bourbon & Bayonets
All eyes are on Citigroup (NYSE:C) this morning, which has just begun to break through the $5.00 mark. This is an important psychological mark for investors as it seems that one of the worst offenders and symbols of last year’s crash is now back in institutional trading territory. The only other stocks that would surprise me and most of the Street to be above $5.00 would be Fannie and Freddie. (At $5.00, stocks can now begin to garner mutual fund and other large, institutional monies; most funds have stipulations that managers cannot purchase assets under $5.)
Options action has been exploding in Citi for weeks, but yesterday and today have been off the charts. Nearly every single slot on my screen is filled with Citi options that are leading in volume. Yesterday, the theme was call buying across all months on the $5 strike and today the action is continuing; April, May, June, September, and January 2011 are all finding buyers on the $5 strike and some on the $7 strike. Despite the trashy reputation that the stock has on the Street, everyone seems to want a piece of it.
I have and continue to be long the Jan 2011 $5 & $7.50 calls and short the Jan 2011 $ & $5 puts.
Michael J. Zerinskas
Benzinga
Kid kist on Thu, 15th Apr 2010 4:30 PM
Last month citi ralied to its 4 mark and quickly retracted back to it’s 3.75 support before descending a week later to 4.20. I have a huge feeling history repeats and once again today citi climbed to 5 before retracked to 4.80. This is a great sign the stock was able to hold it’s 4.75 support and has room to grow. I sences investors today wanted to pull gains before the q1 next week. This is a bullish sign investors are awaiting the results of earnings. I personally would rather see gains pulled now instead after earnings If citi creats a markable depth of gains we will see a bullish rise. The instituiins as well as investors will begin to hord and collect the stock as if the latest fashion was in citi. Today marked the first step that citi has the potential to be the next bac all we need know is the postive results and the rest will be history. To the moon citi to the moon.