Dykstra's Deep-in-the-Money Call: Citigroup

Like many banks, Citi was badly hurt in the subprime crisis. It has had to write down more than $40 billion in losses over the last year. So far Citi has raised in excess of $44 billion in order to help shore things up.

However, the good news is that Citi appears to have found a bottom and it has a plan to get its profits back in line. Recently, CEO Vikram Pandit announced major plans to restructure the company and improve its bottom line.

Pandit said the bank wants to cut between $400 billion and $500 billion from its $2.2 billion balance sheet in various areas over the next three years. Those areas include "legacy assets," as well as its securities and consumer banking areas.

The blood-letting has been underway. Among other trimming, the company said yesterday it would stop offering some new mortgages and personal loans in the U.K. The move could cost up to 700 jobs.

Plus it's got $922 billion in the bank.

The company's plan makes sense to me and even though its stock has been sent to its room, I am still a fan. That's why I am placing an order to buy 10 contracts leaping all the way out until January 2009. I will place a limit order at $4.60 or better for the $20.00 (VRNAD) calls. Going that far out should allow us plenty of time to lock in a win. Don't forget that if the order is filled, I will place a good-till-cancel (GTC) sell order $1.00 above the fill price.

Always Remember: Life is a journey, enjoy the ride!

Know What You Own: C operates in the financial services industry, and some of the other stocks in its field include Bank of America (BAC Quote), Deutsche Bank (DB Quote) and JPMorgan Chase (JPM Quote). These stocks closed at $36.10, $117.83 and $45.99, respectively. For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.