A trader is betting that Citigroup will hold current levels through much of the year.
C is up 0.71 percent to $33.92. The bank's shares bounced off support down near $32 at the start of the week but remain in a downtrend since trading above $38 a month ago.
optionMONSTER's systems detected the sale of 10,000 November 32 puts for $2.98 in a single print. Open interest was 8,871, so this is a new position.
This put seller is betting that C will hold above $32 for the next seven months while also showing a willingness to buy the stock if it falls below that strike price. This trade outperforms the purchase of outright shares unless the stock jumps more than $2.98 by that expiration. (See our Education section)
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Long-term play is bullish on Citigroup
May 2, 2013
The banking giant's shares are near their March highs, and a long-term call vertical spread is looking for more gains by early 2015.
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