Options on Citi trading actively today, on pace for nearly 400,000 contracts as the stock underperforms the sector and is now under $19.50. Flow includes notable demand for downside puts, with algorithmic sweeps being used to buy 10,000 Sep 15 puts for $0.64, and an earlier buy of 7000 Sep 17.5 puts for $1.23. ATM IV in C is near 60% a 30day high, and 10 points from the 70% range seen at the peak of the Bear crisis.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.