Citigroup Stock (C)
Just a touch of weakness today in Citigroup Stock (C) is all it took to beat the goal by 18%. If held to expiry this trade brings in 5.2%. You can see that over the past couple of weeks put premiums are rising which is placing more income into my portfolios. As stock market fear subsides, put option premiums will normalize. These elevated premiums are what allow for smaller position sizes while still generating strong income. Once this ends I will be increasing the size of credit put spreads trades once again.
Original Watch List Trade Idea
Trade Idea:
For Dec 18 expiry selling the $110 put strike for $1.00 or more and buying the $90 or lower put strike for $0.10 or less to form a credit put spread..
TRADE OVERVIEW
– Strategy: Credit Put Spread
– Equity: Citigroup Stock (C)
– Appx Entry Price: $122.00
– Date Opened: Tue Nov 10 2026
– Trade Expiry: Dec 18 2026
– Next Earnings: Jan 14 2027
– Percent Of Protection: 9.8%
– Max Profit: $520.00
– Return On Capital: 5.20%
POSITION SETUP
– Short Puts: Sold 5 put contracts for Dec 18 2026 expiry at the $110.00 put strike for $1.18 = $590.00
– Long Puts: Bought 5 put contracts for Dec 18 2026 expiry at the $90.00 put strike for $0.14 = ($70.00)
*prices may reflect an average received
– Spread Summary: This forms a $20.00 credit put spread returning 5.20% earning $520.00 if held to expiry on Dec 18 2026
RISK & RETURN
– Max Profit: $520.00
– Return On Capital: 5.20%
– Net Credit Per Spread: $104.00
– Spread Width: $20.00
– Capital At Risk: $10,000.00
– Maximum Loss: $9,480.00
KEY LEVELS
– Short Put Strike: $110.00
– Break-even Price: $108.68
– Current Price Buffer: $12.00
– Percent Of Protection: 9.8%
TRADE MANAGEMENT
– Buy To Close Short Put Early for: $0.45 to start
– Adjustment Plan: Reduce buyback price as expiry approaches
– Always Close: If short put falls below 10 cents a week or more before expiry
– Hold To Expiry: Maximum profit if equity remains above $110.00 put strike to expiry on Dec 18 2026
– Stop-Loss: Potential Stop-Loss could be used. Investor should decide how much they are willing to lose on a trade. Example for this trade is perhaps $2.96
Disclaimer: No commissions are taken into account in these trades. Remember do your own due diligence. I am not a financial planner or advisor and have no financial accreditations. Nothing you read are recommendations. FullyInformed.com is for educational and entertainment purposes only.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.