Straddle Sold on Citigroup (C)

Shares of Citigroup (NYSE: C) are higher on the session 0.75%, currently trading at $4.01. The stock has been slowly recovering after testing the 200-day moving average.

There has been a huge trade in Citi’s options today. The January 2011 $4.00 straddle was sold 20,000 times (in a single print) for $1.01. Volume did not exceed open interest on either strike. This sale is surprising given that the volatility on Citi is nearing a new 52-week low.

Citigroup Inc. is a global diversified financial services holding company. The company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries.