Market News

October 19, 2016  Wed 10:28 AM CT

A large position is betting on a ceiling in shares of Citigroup.

optionMONSTER's tracking programs show that 7,130 Weekly 51.50 calls expiring on Nov. 25 were sold in one print for $0.52 today. This is clearly a new position, as open interest in the strike was a mere 70 contracts before the trade appeared.

Short calls generate income and fix the price where a stock must be sold. (See our Education section.) The strategy is usually done in conjunction with long shares, reflecting a belief upside will be limited through expiration.

C is up 0.91 percent to $49.44 in morning trading and has risen 10 percent in the last three months. The financial giant reported strong quarterly results last Friday and is scheduled to announce its next earnings numbers in pre-market hours on Jan. 18.

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Using puts to BUY stock

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