On CNBC's Options Action, Mike Khouw spoke about unusually high options volume in Citigroup Inc C.
Two times daily average volume was traded on Tuesday and that is unusual because the name has a large option volume and it takes a lot to double it. A lot of the activity was institutional call options buying.
There was a call spread risk reversal trade that caught Khouw's attention on Tuesday. A trader sold the March 48 put options and used the proceeds to buy the March 55.50 / 57 call spread. The trade needs a 6 percent move in the next two weeks to be profitable at expiration.
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