Citigroup call leaps vs long stock?

[turkeyneck]

What do you guys think about this strategy? Or is it better to own the stock if you are long term bullish?

http://online.barrons.com/article/SB50001424052970203870804575648803208874596.html?mod=BOL_da_spd

 

[tsaw]

Quote from turkeyneck:

What do you guys think about this strategy? Or is it better to own the stock if you are long term bullish?

http://online.barrons.com/article/SB50001424052970203870804575648803208874596.html?mod=BOL_da_spd

Know that for last 18 months .

Have been buying C leap as substitute for stock

Cheaper - lower risk & much higher return on risk.

Been very good for me .

Start off with Jan 11 leap back in 2009 but am trading Jan 2013 .
.

 

[newguy05]

i have 200x 2012 5C, looking to add some more to get a $10k position.

It's part of my 401k account

I like citi a lot, it went from one of the worst managed banks to a new kid on the block with a lot of potential. With all the good talents that flocked to them over the last 2 years and the government finishing up the stock sales early next year, i think it's a good bet considering the option premiums are relatively cheap on it.

 

[ramaTrade]

Do you think the stock will be pumped up before gov sale ?

 

[turkeyneck]

Quote from ramaTrade:

Do you think the stock will be pumped up before gov sale ?

The sale has already begun...

 

[TheoHornsby]

Quote from turkeyneck:

What do you guys think about this strategy? Or is it better to own the stock if you are long term bullish?

The first sentence in the link says it all -

CHEAP STOCKS AND LEVERAGE are a great combination for making money, or a recipe for a financial bomb