12/06/2020 Plan:
This week, we look at a couple bullish ways to play Citigroup (Ticker: C)
12/6/2020 Plan (continued):
- C – Sell January 8th 52.5/50 put spreads for 0.29 2x
- C – Sell the January 15th 50 put for 0.63***
- ALL – Sell the January 97.5/92.5 put spread for 0.62
- Prices are as of market close 12/4/2020, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
12/6/2020 Commentary:
*** The January 15th Citigroup trade Contains earnings. Do not, do not, do not place this trade unless you are happy to own C at $50/share.
Citigroup has excellent support at the 50 level and I would be happy to own more shares at that level. The current dividend is $2.04/year, which would give us over a 4% yield if assigned.
The put spread is a straightforward trade that assumes Citigroup will move less than is currently implied based on the straddle price.
The ALL put spread short strike is just below the expected move and this is a name I would consider wheeling if the stock does end up in between our two strikes.
Reach out with any questions on this or any other trade!
12/7/2020 Entry:
We sold the Citigroup January 8th 52.5/50 put spreads for 0.32
We sold the C January 8th 50 put for 0.50. This is a little less premium, but it is 1 week earlier and avoids earnings
Choose one of the C trades. I like the latter as I’m happy to be assigned and write covered calls against it.
We sold the ALL January 15th 95/90 put spread for 0.50
12/13/2020 Update:
The Citigroup put spread is worth 0.26, the naked put 0.28. Nice decay this past week and no action planned this week
The ALL put spread is down to about 0.43, decaying a bit. Also no planned action this week as expiration on this trade is still a few weeks out.
12/20/2020 Update:
The ALL put spread is down to 0.13 and can be closed at any time based on your profit target. There is still a long time for this trade, so it will take a while to squeeze more premium out of it.
The Citigroup put spreads are down to about 0.12 and can also be closed. I’ll likely leave it on at least through this week. Our short strike is almost $10 out of the money, so plenty of buffer for now.
12/27/2020 Update:
The Citigroup spreads are worth about 0.03 and can be closed.
The ALL put spread is down to about 0.10 and can also be closed at your convenience to free up capital.
12/28/2020 Close:
Citigroup spreads have been closed for 0.03 – you may be able to close for only 0.02. This is another nice win for our members!
1/4/2021 Update:
If you still have the ALL put spread on it can be closed for 0.08-0.10 at your convenience.
1/10/2021 Update:
If you Still have the ALL put spread, don’t forget to close it this week! It will very likely expire worthless, but if it is anywhere close, make sure to close it out.
1/17/2021 Update/Close:
The ALL put spread expired worthless, allowing us to keep the entire premium of 0.50 adding another $50 to our account for every put spread we put on.
Reach out with any questions on this or any other trade
