Sunday, October 10, 2010

233% Gain!? I Hope You Jumped On Citi $4 Options

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Unfortunately, I have been exceptionally busy lately, and have not had time to update you on some of the stock and options picks I have made in the past month or so.  I will try to do so this coming week, however, I wanted to update you on the Citi position I am currently in.

As you recall in this post I stated that I would be buying C $4 October 16th CALLS.  I did so at $.06 the following day.  If you're following the stock, you know that it closed at $.19 this past Friday, and moved to $.20 in the after hours.  The options I purchased closed at $.20 on Friday.  As is now, I believe we are going to see a continuation of the broad market rally this week.  I also believe the lack of government selling will continue to buoy C into earnings next Monday.  As such, I am going to leave this trade on.  Currently, the C options I am in have an intrinsic value of $.20 (using the after hours close), and a time value of $.00.  I suspect the options will open somewhere in the $.21-.22 range tomorrow, and continue to move higher throughout the week.  So far my gain is 233.33%.  I'll update you as the week progresses.

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