Citigroup ( C ) will report its third-quarter numbers before the market open October 12 with the consensus calling for earnings of $1.67 per share. During the same period last year the company earned $1.42 and the stock is down 2.3% on the year.
C was recently trading at $72.40 down $8.30 from its 12-month high and $8.02 above its 12-month low. InvestorsObserver's Stock Score Report gives C a 75 long-term technical score and a 72 short-term technical score. The stock has recent support above $69 and recent resistance below $75. Of the 17 analysts who cover the stock 11 rate it Strong Buy, 1 rate it Buy, 4 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell. C gets a score of from InvestorsObserver's Stock Score Report.
Citigroup has trended higher over the last four months, but the stock has yet to manage crossing into positive territory for the year. The bank has posted better than expected profits the last 14 quarters, but sales were slightly weaker than expected last quarter. The company has a great earnings track record, and the street expects another beat this quarter with a whisper number of $1.73 versus the consensus $1.67. With interest rates on the rise, bank stocks will likely be strong moving forward, and Citigroup's recent strength should continue as long as there are no signs of weakness in the quarterly report. Analysts have an $86.68 average price target on the stock.
Stock Only Trade
If you want a bullish hedged trade on the stock, consider a 11/16/18 60/65 bull-put credit spread for a $0.35 credit. That's a potential 7.5% return (65.4% annualized*) and the stock would have to fall 10.7% to cause a problem.
If you want to take a bearish stance on the stock at this time, consider an 11/16/18 80/85 bear-call credit spread for a $0.25 credit. That's a potential 5.3% return (45.7% annualized*) and the stock would have to rise 10.8% to cause a problem.
Covered Call Trade
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.com