Option Trade
 Citigroup Inc (NYSE:C) Calls
Thursday, 14th July, 2016

** OPTION TRADE: Buy the C SEPT16 2016 45.000 call at approximately $1.15. Place a pre-determined sell at $2.30.

Note: No protective stop losses added -- but if you wish to do so make it $0.45.

by Ian Harvey

July 14, 2016

Citigroup Inc (NYSE: C), a financial services holding company, is due to report its second-quarter results before the market open on July 15. Analysts forecast earnings of $1.12 per share, down from $1.45 during the same period last year. Also, analysts expect the company to announce revenue of $17.85 billion for the quarter.

The stock is rebounding from a post-Brexit sell off, and shares are currently down 19.3% on the year.

Citigroup Inc. has a 52 week low of $34.52 and a 52 week high of $60.95. The stock has a market capitalization of $127.17 billion and a P/E ratio of 8.66. The company’s 50-day moving average is $43.41 and its 200 day moving average is $43.25.

The US banking giant performed brilliantly in the first quarter and is expected to continue the good performance in 2QFY16.

Analysts have lowered the bar for the bank, with expectations for earnings, revenue and net interest margin falling significantly over the last several months. And although financial stocks were hit hard in the immediate aftermath of last month’s Brexit vote, some analysts believe it could help boost the third-quarter outlook for large banks.

“Near term, we expect Brexit will benefit earnings due to increase in trading volumes following the surprise results and hence spike in volatility,” analyst Vivek Juneja at J.P. Morgan wrote in a note to clients.

Berenberg Bank began coverage on shares of Citigroup in a research report on Wednesday. They set a “buy” rating and a $50.00 price target for the company.

Also, several other equities research analysts have recently commented on the company.

• Jefferies Group reissued a “buy” rating on shares of Citigroup in a research report on Sunday.

• Credit Suisse Group AG reissued a “buy” rating on shares of Citigroup in a research report on Saturday, July 9th.

• Finally, Barclays PLC reissued a “buy” rating and set a $60.00 price target on shares of Citigroup in a research report on Sunday.

Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and seventeen have given a buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $56.16.

Conclusion

Therefore, based on the facts above, the following option trade is recommended…..

** OPTION TRADE: Buy the C SEPT16 2016 45.000 call at approximately $1.15. Place a pre-determined sell at $2.30.

Note: No protective stop losses added -- but if you wish to do so make it $0.45.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



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