Citigroup (C) A Great Candidate For A Downside SpreadAlthough the banking sector has largely had a rally since the Presidential election, regulatory headwinds and near-term fundamental outlook and projections have seemed bleak for Citigroup’s growth potential. Long-term, the stock is a great purchase at a somewhat discounted price to its recent trading, but for our swing strategy, the latest break to the downside into a possible downtrend or consolidation is an opportunity for us.
If you’re looking for a 1:1 risk/reward trade with a skewed probability curve starting at roughly 62% chance of success to earn 100% ROI, then Citigroup is a gem in this turbulent market. Actually, we found this trade while scanning due to possibly having to close for a loss on our recent Alphabet (GOOG) trade due to management’s screw-up on an epic scale regarding extremist videos and advertisements on Youtube .
Anyways, here’s the trade we see:
Current stock price $58.46
Buy X Puts; 13 Apr 17 Exp; 58.50 Strike
Sell X Puts; 13 Apr 17 Exp; 58 Strike
Max Return on Risk/ROI: ~100%
Fun times.
