Chicago Board Options Exchange
said it has initiated an investigation into the "unusual" recent trading activity in Associates First and Citigroup options.
According to options market participants,
Salomon Smith Barney
brokers were buying call options for a customer Friday and Tuesday. Brokers act as agents for their customers on exchanges. Salomon is a unit of Citigroup, leaving the suggestion that perhaps someone knew something that no one else did.
Citigroup shares were recently off 3.4% and Associates First shares were up 40.2%.