I know we are still in 2025… but I am getting ready to setup some 2026 trades and slowly I will add to them as I close 2025 trades. 2025 is a good year for Citi shareholders… hopefully lady luck will continue to smile on us 
Today I bought Jan 27, 65/70 call spread for $4.01, if the stock price is above $70, then you get 24.7% simple return, or 19.09% annualized return, if not, you are buying the shares for $69, that is 29% below current price. By Jan 2027 the TBV will be $105, Citi is expected to earn $10, so this spread covers recession downside.
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This is an interesting call spread. My pricing this morning indicated even better settlement at $3.65 and better return. I would have to hold significant cash reserves as well, eroding my final value somewhat (MM rates are 3.8% and falling).
Are you sure? The bid-ask are wide. So it will be difficult to get the price you are talking about…
You don’t need to hold any cash except the initial price. It is a call spread, so you are buying $65 and selling $70 call. The short $70 call is supported by the long $65. This will have no impact on your margin either. You have lots of time, another 470 days to decide what you want with this spread, if the price is above $70, then you can sell and pocket the gains, or even if they are assigned, it will be assign and sell, so no cash impact.
The primary reason I switched to call spreads is to mitigate margin impact.
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Makes sense. Looks like they rolled back my options level was rolled back. The short option (sell to open) was prohibited.
Ask for call spreads, then you are selling naked calls, which is the highest option level. Call spread is same level as covered call in most brokerage.