A large call spread is looking for a modest rise in Citigroup.
A trader bought 4,000 October 27 calls for the ask price of $1.46 and sold 8,000 October 30 calls for the bid price of $0.50. The volume at each strike was above the open interest at the beginning of the session, so this is a new ratio spread.
C finished yesterday down 2.2 percent to $26.18. The bank has been trading between $25 and $29 for the last three months after falling from its 2012 highs above $38 set in late March. The $25 support level, which marks the year's lows, goes back to November.
Today's call spread costs the trader $0.46, which will be lost if C remains below $27 through that expiration. The maximum profit comes with the stock right around $30, a level last seen in early May. Above that, the trader faces assignment and the obligation to sell shares. (See our Education section)
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