With Citigroup stock down 3% following their earnings release today, what we are seeing is partly a case of an overbought market and stock. This is a bit of the old tradition of “selling the news”. A lot of investors had bought into Citigroup Stock as it rallied from $66.50 from September 11 to $76 on Oct 6. This is a rally of 15% and once investors start to sell, other investors suddenly decide they want to lock in profits as well. With the stock down to $73 today, investors who bought at the $66.50 level are now up just 9% and this creates an atmosphere of “lock in my profit NOW”.
Here are some trades I entered today in Citigroup stock as I took advantage of some of the higher put premiums thanks to the plummet in the stock of over 3%.
This Citigroup Stock (C) Trade Alert and Strategy Article is for FullyInformed Members.
Citigroup Stock (C) Trade Alerts After Earnings Plummet – Oct 12 2017
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk.