Kevin, who's looking to buy puts on Citigroup asked for my read of the chart:
I am considering buying some July 05 45 puts on C. It looks ripe for a pullback based on the MACD bearish crossover, and bearish stochastic
change. What do you think?
First let me say that I don't know jack about options so I'll just talk from the standpoint of being bearish on C without regard to that specific options play. Based on the chart I'd have to be in the bullish camp. I say that simply based on the stocks relationship to its major moving averages. It's above those averages so the trend is up. (It did slip under the 10 DMA on Friday though.) Even if the stock broke its 20 DMA there's still potential support near $46 from both the 50 and 200 DMAs.
