[Closing Short Leg of Citigroup (C) Spread]
Dear Member:
Citigroup (C) dropped to a support and bounced forming a double bottom. Some time ago, I had sold the Jan 50 calls (CAJ)for $3.20. It looks like I may now be able to buy them back for around $2.30 or $2.35. I am placing an order to buy to close the Jan 50 calls (CAJ) at a limit of $2.35. If filled, that will equal a return of 26.5% (before a small commission) on the leg I am closing. I will still own the Jan 45 calls.
DISCLOSURE: At the time of publication, I am short the Jan 50 and long the Jan 45 calls on C.
Sincerely,
Bill Kraft
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