C

Discussion in 'Options' started by oldnemesis, Jun 4, 2016.

  1. http://www.reuters.com/article/us-citigroup-ceo-outlook-idUSKCN0YO2SB

    http://finance.yahoo.com/news/big-banks-waited-years-rate-164449097.html

    http://finance.yahoo.com/news/citigroup-leads-bank-stocks-lower-142623231.html

    http://finance.yahoo.com/echarts?s=C+Interactive#{"range":"2y","allowChartStacking":true}

    Trade:
    With C at 45.39
    Jan '17 57.5/60 bear call spread for a net credit of $18
    Yield = 18/232 = 7.76% in 230 days or 12.3% annualized
    Prob = 89%
    Expectation = .89(18) - .07(232) - .04(116) = 16.0 - 16.2 - 4.6 = -4.8

    Price.......... Profit / Loss.......... ROM %
    35.00............. 18.00.................. 7.76%
    40.00............. 18.00.................. 7.76%
    50.00............. 18.00.................. 7.76%
    57.50............. 18.00.................. 7.76%
    57.68............... 0.00.................. 0.00%
    58.45............ (77.20).............. -30.88%
    60.00............ (232.00)............. -92.20%
    70.00............ (232.00)............. -92.20%
    75.00............ (232.00)............. -92.20%

     
    Last edited: Jun 4, 2016
    murray t turtle likes this.
  2. %%
    Hedge fund manager Jim Cramer said recently ''banks rally on nothing'' Too bad the 200 day moving average is against most of them[ big banks] LOL NOT a prediction.

    The CEO of Citigroup[sandy W ] was quoted in WSJ,'' break up big banks''...................
     
  3. Last edited: Jun 14, 2016
    murray t turtle likes this.
  4. Wells Fargo has done better than most; BAC, C tend to do much worse than average. I was noting the stock price past 10 years. WSJ noted that on 5 years, but both are true Even worse, all the big bank losing lawsuits.....