Citigroup finally did it. It is back up over $5. Some rich guy is buying up shares to the equivalence of 2% of the company. That's a lot of shares considering Citigroup trades about 1.2 billion shares daily. These rich guys seem to know what they are doing. And it's good for Citigroup and Citigroup's investors. $5 is still way cheap. Citigroup is getting well and investors are taking note. I expect this stock to have the tidal wave effect once it really gets on a roll.
You can buy the January 2011 strike price call option for 58 cents. If Citygroup does in fact go up to $10 by next October, those options could be worth $5 to $6. If you owned 10,000 of those options your earnings could be about $44,200. And that would be off from a $5,800 investment. Sounds good to me. I could buy a lot of Starbucks for that.
Well, until next time.
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