By Pete Najarian, co-founder of OptionMonster NEW YORK ( TheStreet) -- The financials were grabbing some attention in the option market Monday, especially Citigroup (CITI).
tracking systems detected unusual activity in the name as traders looked for short-term gains this week. The August 51 calls were the busiest, with blocks going for 38 cents to 50 cents. The August 50s, 52s and 52.50s followed, each with more than 4,300 contracts trading.
These calls lock in the price where shares can be purchased in the megabank. If Monday's trades are right about a rally by this Friday, those contracts provide some significant leverage in a hurry.
Citigroup's stock fell 0.82%, to $40.90, in the session, but the stock is up 29% so far this year. Most of that move occurred by late May, and shares have been drifting lower since.
Total option volume in the name was almost twice its daily average, with calls outnumbering puts by more than 2 to 1.
At the time of publication, Najarian owned C calls, although positions may change at any time.