Citigroup is at the high end of its recent range, but one trader is positioning for limited additional upside.
C is up 0.92 percent to $29.05, up against three-month resistance but on pace for its highest close in that time. Shares were down at the bottom end of the range around $25 just three weeks ago.
A trader sold one block of 10,000 October 32 calls for the bid price of $0.60, optionMONSTER's tracking systems show. The volume was twice the open interest, so this is a new position.
Less than a minute later, a block of 250,000 shares of C were bought for $29.12. That would make the overall position delta-neutral, or focused on lower volatility rather than a stock direction.
The overall strategy could profit if C is range-bound around $32 and/or if the actual volatility is less than that implied by the options. (See our Education section)
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