Citigroup Put Open Interest Elevated Before Earnings

Put open interest has surged on Citgroup of late

Managing Editor
Jul 12, 2019 at 11:07 AM
facebook X logo linkedin


Bank giant Citigroup Inc (NYSE:C) is up 0.3% at $71.83 this afternoon, eyeing its sixth straight weekly win. Options traders may be gearing up for the company's second-quarter earnings, slated for before the market opens, Monday, July 15. Below we will take a look at how C has been faring on the charts, as well as to what the options market is pricing in for the stock's post-earnings moves.

As alluded to earlier, with the stock eyeing a sixth weekly win, it has been climbing the charts. Capturing a myriad of pullbacks has been the $61-$62 floor of support, with the $72 ceiling containing two breakout attempts so far this year. Overall, Citigroup stock has tacked on 32% year-to-date.

Daily C with Highlight Since Jan 2019

Looking at the financial name's earnings history, the stock has closed flat or higher the day after earnings in five of the past eight quarters -- including a 4% surge in mid-January. Over the past two years, the shares have swung an average of 1.8% the day after earnings, regardless of direction. This time around, the options market is pricing in a larger-than-usual 3.1% swing for Monday's trading. 

Looking at options, near-term options traders are unusually put-skewed on C, according to its Schaeffer's put/call open interest ratio (SOIR) of 1.03. This reading ranks in the 86th annual percentile, showing that it's rare for put open interest to outweigh call open interest among contracts expiring within three months. Currently, peak put open interest lies at the January 2020 60- and 65-strikes, with around 30,000 contracts at each.

Analyst attention has been bullish on Citigroup, with all 14 covering firms sporting a "buy" or "strong buy" recommendation coming into today. This makes the stock's average 12-month price target even less surprising, as it comes in 12.6% above current trading levels.


 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI