Citigroup (C, $4.01, up $0.21) was rolling again yesterday morning and managed to trade as high as $4.48 within the first hour of trading. The stock still finished 5% higher for the day but well off its highs. Given the Goldman Sachs (GS, $115.11, down $15.04) sell-off that was happening right from the jump, it should have been a no-brainer to get out of the call options I have talking about this week.
The April 3 calls (CDV, $1.07, up $0.26) opened at 35 cents on Monday morning and hit a high of $1.49. The April 4 calls (CDW, $0.47, up $0.15) traded as high as 75 cents and were going for 14 cents.
The May 3 calls (CEV, $1.22, up $0.29) could have been picked up for 56 cents and jumped to $1.58 at one point. The May 4 calls (CEW, $0.83, up $0.28) could have been picked up for a quarter and four pennies (29 cents) and hit $1.06.
Bank Of Amercia (BAC, $10.09, down $0.93) couldn’t even manage to hold onto its gains after opening higher and hitting a brick wall late in the day. We had a stop of $4 for the May 6 calls (BYOEF, $4.40, down $0.75) which wasn’t triggered but when the options traded to a high of $5.65, it was your sign to get out, especially when your entry price was only 75 cents.
The July 10 calls (JLWGB, $1.58, down $0.32) had a stop of $1.50 and that would have been hit had the market stayed open for another hour. These call options were profiled at 30 cents. I would stay out of the way as far as the financials go for the rest of the week but watch for Goldman to lead the next charge higher whenever that may be.
Rick Rouse
Rick@OptionsMentoring.com
