May 13, 2013 (Marketintelligencecenter.com via COMTEX) -- Citigroup Inc. (NYSE:C) closed Friday's trading session at $48.75. In the past year, the stock has hit a 52-week low of $24.61 and 52-week high of $49.46. Citigroup (C) stock has been showing support around $48.24 and resistance in the $49.14 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 Jul '13 $48.00 covered call for a net debit in the $46.23 area. That is also the break-even stock price for this trade. This covered call has a duration of 68 days, provides 5.17% downside protection and an assigned return rate of 3.83% for an annualized return rate of 20.55% (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 $35.00 call and selling the Jul '13 $48.00 call for a total debit of $11.93. The trade has a lifespan of 68 days and would provide 3.73% downside protection and an assigned return rate of 8.97% for an annualized return rate of 48% (for comparison purposes only). Citigroup (C) has a current annual dividend yield of 0.08%.
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As of Thursday, 05-09-2013 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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