Potential Citigroup (C) Trade Has $41.09 Breakeven

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Feb 12, 2013 (Marketintelligencecenter.com via COMTEX) -- Citigroup Inc. (NYSE:C) closed Monday's trading session at $43.15. In the past year, the stock has hit a 52-week low of $24.61 and 52-week high of $43.49. Citigroup (C) stock has been showing support around $42.10 and resistance in the $43.92 range. Technical indicators for the stock are Bullish and S&P gives Citigroup (C) a positive 4 STARS (out of 5) buy rating. For a hedged play on Citigroup (C), look at the Apr '13 $43.00 covered call for a net debit in the $41.09 area. That is also the break-even stock price for this trade. This covered call has a duration of 67 days, provides 4.77% downside protection and an assigned return rate of 4.65% for an annualized return rate of 25.32% (for comparison purposes only). A lower-cost hedged play for Citigroup (C) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Citigroup (C) Jan '14 $27.00 call and selling the Apr '13 $43.00 call for a total debit of $14.54. The trade has a lifespan of 67 days and would provide 3.73% downside protection and an assigned return rate of 10.04% for an annualized return rate of 55% (for comparison purposes only). Citigroup (C) has a current annual dividend yield of 0.09%.


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As of Friday, 02-08-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
04-09-2012 for C @ $33.93.

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provider or go to www.mysmartrend.com

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