Is Citi About To Make A Move?

On Sunday evening I wrote this post about a trade I was venturing into in Citigroup (C).  In that post, I stated that I was going to be buying October $4 CALLS, for $.05 - $.06.  Well, I entered into the trade on Monday at $.06, the high end of my range, but I'm ok with it nonetheless.

Today, the beautiful office of the U.S. Treasury came out and said they are selling $2.2b bailout Trups in Citigroup, thereby making an uninteresting morning awesome as I watched Citi trade all the way up to $3.99, and my CALLs trade up to $.09.  The article on the Treasury sale can be found here.

All of this is fine and dandy, but my thesis for why I think Citi will eclipse $4.15 by the middle of October has not even begun to take effect yet.  As I stated in my prior blog post, the Treasury is going to suspend their sale of Citi common stock due to their blackout period before earnings after tomorrow's trading.  From there, through the next two weeks I am suspecting that C will make a nice move upward.  Even more validating, Bryan Kelly said today on CNBC's Fast Money that he entered into the stock today for the same reason that I bought my CALLs on Monday.  While there is barely a mention of it on the Fast Money recap page here, you can watch the episode later this evening, or on your TiVo (if you're sick and obsessive and DVR this show like I do) and check out his recommendation.

I will keep ya'll posted on this trade in the next two weeks, with any luck, it will be very profitable.