4 Trade Ideas for Citigroup: Bonus Idea

• Posted by Greg Harmon
• on April 29th, 2024

Here is your Bonus Idea with links to the full Top Ten:

Citigroup, $C, comes into the week approaching resistance. It has a RSI in the bullish zone with the MACD crossed up and rising. The short consolidation just under the prior high would give a target to 67 on a break higher. There is resistance at 6375 and 64.75 then 66.50 and 68.50 before 70 and 73. Support lower sits at 61.50 and 58.50. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 3.38% and will start trading ex-dividend on May 3rd.

The company is expected to report next on July 12th before the open. The May options chain shows the biggest open interest at 55 then 60 on the put side, and at 62.50 then 65 and 60 on the call side. In the June chain open interest is biggest at the 50 and then 45 put strikes and is large from 50 to 65, biggest at both ends on the call side. Finally, the July chain has biggest open interest at the 52.50 then 55 put strikes and at the 65 then 62.50 call strikes.

Citigroup, Ticker: $C

Trade Idea 1: Buy the stock on a move over 63.50 with a stop at 60.50.

Trade Idea 2: Buy the stock on a move over 63.50 and add a June 60/57.50 Put Spread (67 cents) while selling the July 72.50 Calls (42 cents).

Trade Idea 3: Buy the June/July 67.50 Call Calendar (67 cents) while selling the June 57.50 Puts (60 cents).

Trade Idea 4: Buy the July 57.50/65/70 Call Spread Risk Reversal (35 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with just 2 trading days left in April, saw equity markets show some resilience with a rebound from their first 5% or more pullbacks this year.

Elsewhere look for Gold to continue its uptrend while Crude Oil pauses in its move higher. The US Dollar Index continues to drift to the top of consolidation while US Treasuries resume their downtrend. The Shanghai Composite shifts into short term consolidation while Emerging Markets consolidate near the top of a broad range.

The Volatility Index looks to remain low making the path easier for equity markets to the upside. The SPY and QQQ charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY as well as the IWM are working on reversing their pullbacks. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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