Citigroup Shares Plummets 1.14 as $1.58 Billion Volume Drops 21.09 to 47th Rank Amid Options Strategy Hopes

Citigroup (C) closed at a 1.14% decline on Aug. 13, with a trading volume of $1.58 billion, marking a 21.09% drop from the previous day’s volume and ranking 47th in market activity. The stock remains under pressure as technical indicators suggest potential volatility ahead.

Analysts highlight a cash-secured put strategy as a risk-managed approach for investors interested in Citigroup. By selling a Sept. 19, 95-strike put, traders could collect $260 in premium per contract, effectively lowering the breakeven price to $92.40—3.5% below the recent closing level. This strategy offers a 2.8% return if the stock stays above $95 at expiration, though losses could arise if prices fall sharply. The move aligns with Citigroup’s IBD Composite Rating of 87, reflecting strong relative strength but moderate earnings momentum.

With second-quarter earnings already reported, the stock faces no immediate catalysts, leaving technical factors and macroeconomic conditions as key drivers. The IBD Stock Checkup ranks Citigroup No. 11 in its sector, underscoring its appeal for investors seeking income opportunities through options strategies. However, risks remain tied to broader market trends and potential sector-specific pressures.

A backtest of a volume-based strategy—purchasing the top 500 stocks by daily trading volume and holding for one day—showed a 20.15% total gain from 2022 to the present. This outperformed passive benchmarks, highlighting the potential of high-volume stocks to capture short-term market movements effectively.