need advise on Citi

NewTrader · Oct 25, 2008

I still have 5K shares in Citi , which is 45% of my total portfolio. I know I must be in sane to own such a big position in Citi. I was told as a long term investor, it is time to own Citi. I was trapped again and didn't sell in the last rally. I look at Friday's chart. It is really scary. Can anyone give me some advises on long and short term view? Although I can hold it as long term investment, I will go crazy if I see C under $10 . I am thinking of sell them all on Monday in exchange of BAC or LVS no matter what the market is.
Thanks.

Jahajee · Oct 25, 2008

Quote from NewTrader:

I still have 5K shares in Citi , which is 45% of my total portfolio. I know I must be in sane to own such a big position in Citi. I was told as a long term investor, it is time to own Citi. I was trapped again and didn't sell in the last rally. I look at Friday's chart. It is really scary. Can anyone give me some advises on long and short term view? Although I can hold it as long term investment, I will go crazy if I see C under $10 . I am thinking of sell them all on Monday in exchange of BAC or LVS no matter what the market is.
Thanks.

Hold them. Don't sell with Citi almost at the low. C can rally 50% in a week (not much in real terms, about $6, but a lot if you own 5K shares).

DON'T PANIC AND SELL AT THE LOW!

PM me if you need more info

nazzdack · Oct 25, 2008

Short-sell some at-the-money, short-dated, covered-calls against the stock. Do something. Don't just sit there like a hopeful fool.

Daal · Oct 25, 2008

Quote from nazzdack:

Short-sell some at-the-money, short-dated, covered-calls against the stock. Do something. Don't just sit there like a hopeful fool.

man, he doesnt want to cap his upside when buffett bids for C with 50% premium

oktiri · Oct 25, 2008

anyone who thinks banks are recovering is fooling himself : mortgage business is dead, retail banking + credit cards is dead.
Wait for the next sucker rally and SELL.
Citi is hopeless, it'll only trend lower

nazzdack · Oct 25, 2008

Quote from Daal:

man, he doesnt want to cap his upside when buffett bids for C with 50% premium

You seem to be assuming a bid may happen immediately. If Buffett does something at an even lower level, a 50% premium will be "chump change" still. We'll see.

kinggyppo · Oct 25, 2008

Quote from NewTrader:

I still have 5K shares in Citi , which is 45% of my total portfolio. I know I must be in sane to own such a big position in Citi. I was told as a long term investor, it is time to own Citi. I was trapped again and didn't sell in the last rally. I look at Friday's chart. It is really scary. Can anyone give me some advises on long and short term view? Although I can hold it as long term investment, I will go crazy if I see C under $10 . I am thinking of sell them all on Monday in exchange of BAC or LVS no matter what the market is.
Thanks.

http://finance.yahoo.com/q/op?s=C&m=2010-01

or look up leaps on the cboe. You should talk to someone who is not an idiot about selling calls or puts against the position. The idea is to sell far enough out so if your strike gets hit it doesn't add to your misery. Most brokers don't know jack shit about options (look at mutual funds a herd of elephants). I don't know where you are long from, but if I was under water I might sell the jan2009 5 put strike. YOU need to understand your strategies and best and worst case scenario. You should also learn how to use a stop when long stock, that said just about everyone has a dog in their portfolio, you are not alone . Good trading.

NewTrader · Oct 26, 2008

Quote from kinggyppo:

http://finance.yahoo.com/q/op?s=C&m=2010-01

or look up leaps on the cboe. You should talk to someone who is not an idiot about selling calls or puts against the position. The idea is to sell far enough out so if your strike gets hit it doesn't add to your misery. Most brokers don't know jack shit about options (look at mutual funds a herd of elephants). I don't know where you are long from, but if I was under water I might sell the jan2009 5 put strike. YOU need to understand your strategies and best and worst case scenario. You should also learn how to use a stop when long stock, that said just about everyone has a dog in their portfolio, you are not alone . Good trading.

Thanks for the advises.
Selling jan 2009 put does very little help if Citi is really going down another 50%. The best way is probably selling the next week's rally, and taking a big loss. I can only pray a rebound next week before it slides down below the current support of $12.

NewTrader · Oct 26, 2008

Quote from nazzdack:

Short-sell some at-the-money, short-dated, covered-calls against the stock. Do something. Don't just sit there like a hopeful fool.

Goldman Sachs has "convinced sell" on it.
My average cost of Citi is $17.5
If Citi has really reached it's bottom, then of course I would buy covered calls. I really can't bear even just another 20% down, not mention it can go under $6 with government's bailout. Comparing Citi's Friday charts with other bank stocks, I can't but agreeing Goldman Sachs.
I don't like gambling. I need to play a bit gambling at this time to make me feel comfortable. Here is my two choices for my Citi:
1. Sell Citi and buy Bac on Monday. Wait for some rebound of Bac and sell off. Put the money in tabacco sector PM or MO.
2. Wait for Citi's rebound and sell off.

Any charting experts there can calm me down

FanOfFridays · Oct 26, 2008

Quote from NewTrader:
I don't like gambling. I need to play a bit gambling at this time to make me feel comfortable. Here is my two choices for my Citi:
1. Sell Citi and buy Bac on Monday. Wait for some rebound of Bac and sell off. Put the money in tabacco sector PM or MO.
2. Wait for Citi's rebound and sell off.

Any charting experts there can calm me down

I'm sorry to say this but your posts here indicate that you're not thinking too clearly about your situation. You seem to be in the gambler's mindset, taking your money off one number and putting the whole thing on another number and praying that your number gets hit. Sell Citi and buy BAC and 'wait for a rebound in BAC and sell off'? That sounds like push your chips in the middle and pray.

You seem to have put a large amount of your trading capital in one stock, and apparently you're thinking of doing the same thing again. If the idea is that you think the selling is done and stocks represent good value at this time, and you're willing to hold for the long term, don't put your money in one sector or stock. Take a balanced approach.

I guarantee you 100% for sure that right now you are not thinking about balance, you are thinking about how you can make your money back quickly. This will usually cause you more pain.

You say you are not a gambler but you need to gamble right now. This is not correct.

By the way, I notice you said 'buy covered calls'. I'm not an options guy, but I think what people here were recommending is that you sell calls against your long position. However, this is the same thing as being short puts, I believe. nazzdack knows more about this than I do.