Tomorrow I will be buying October 15th $4 Citi CALLS. Citi is currently sitting at $3.90, and the Calls are trading at $.05. I am going to put an order in at $.05, but am willing to adjust up to $.06 if need be. I am going to see what the market futures look like later on this evening and in the pre-market tomorrow, and make a decision from there.
As you know, the S&P 500 crossed above important resistance ~1,131 this week. The S&P 500 currently sits at 1,148, and I believe is poised to test the April highs around 1,200 in the near term.
Citi will be reporting earnings on October 18th, and as such the government's blackout period for selling shares of Citi begins on October 1st, and lasts through options expiration. Looking back to July when the government had their blackout period, Citi ran from $3.80 all the way up to $4.30. I am not going to bore you with all the math, but my analysis suggests that Citi can make a run to $4.15 and maybe higher before expiration based on the market move I am expecting, and the past history of what happens during the government blackout period.
agree...
ReplyDelete4 dollar calls and for later 5 dollar calls is the way to go here...
and get bunch of LEAPs to expire in 2012 that is way to riches!