Citigroup Eyes Potential Magnet Move Toward $140

Bank maven Citigroup (NYSE:C) is holding its pre-earnings candle high around its 20-day moving average. Below that, January and February highs are a potential pivot to monitor.
 
Options traders are heavily put skewed, per C’s 10-day put/call volume ratio of 1.48 sitting in the 92nd percentile of its annual range. This sets up for a potential unwind.

C options are reasonably priced per Schaeffer's Volatility Index (SVI) of 30% stands higher than just 28% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.

Our recommended call option has a leverage ratio of 8.0 and will double in value in an underlying move of 12.7% for the equity.