DailyPlay – Opening Trade (C) – October 09, 2025

C Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Citigroup Inc. (C) presents an attractive opportunity for bullish positioning as the stock consolidates near support following a strong multi-month uptrend. Citigroup, Inc. is set to report earnings this Tuesday, Oct 14th, before the open. Despite near-term volatility tied to upcoming earnings, the intermediate trend remains constructive, underpinned by improving fundamentals and relative strength versus the broader financial sector. With valuation metrics still below peers and market sentiment recovering, this pullback offers traders a compelling entry point for upside exposure into year-end.

Technical Analysis
Citi recently broke above its $97 resistance level and has since retested that zone as new support, confirming the breakout. The alignment of the 20-day, 50-day, and 200-day moving averages in bullish order highlights strong trend structure. Price action remains constructive despite a brief consolidation, with RSI having reset from overbought to neutral levels, allowing room for another push higher. A sustained hold above the 20-day moving average keeps the bullish setup intact, with earnings serving as a potential catalyst for a measured move toward $135 over the intermediate term.

Fundamental Analysis
Citigroup remains modestly undervalued relative to peers, trading at a discount on a price-to-book (PB) basis that highlights its potential for multiple expansion as profitability improves. The company’s PB ratio of 0.91x suggests investors have yet to fully price in its ongoing operational turnaround and efficiency gains. With strong expected EPS growth and a renewed focus on streamlining business lines, Citigroup is positioned to close the valuation gap with peers. Furthermore, its solid balance sheet and consistent dividend yield strengthen its appeal in a sustained higher-rate environment.

• PB Ratio: 0.91x vs. Industry Median 1.37x
• Expected EPS Growth: 23.41% vs. Industry Median 10.90%
• Expected Revenue Growth: 3.52% vs. Industry Median 5.73%
• Net Margins: 17.06% vs. Industry Median 26.86%

Options Trade
The proposed trade is a bull call vertical, established by buying the Oct 31, 2025 $95 call and selling the $105 call for a net debit of $3.65. This defined-risk strategy provides targeted upside participation while capping downside exposure ahead of earnings. The maximum potential profit is $635 if C closes above $105 at expiration, offering a risk/reward ratio of roughly 1.74:1. The setup seeks to capitalize on a rebound from current support within the broader bullish trend, using moderate leverage to express directional conviction while managing time decay and volatility around the earnings event.

C – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 5 C Oct 31 $95/$105 Call Vertical Spreads @ $3.65 Debit per Contract.

Total Risk: This trade has a max risk of $1,825 (5 Contracts x $365) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $365 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 107

Stop Loss: @ $1.83 (50% loss of premium)

View C Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View C Trade