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The big banks kicked off earnings season on Wednesday, and options traders are betting that Citi will jump higher when it reports before the bell on Thursday.
"We were taking a look at Exxon, this is a name where we saw calls outpacing puts by [a ratio of] about 5 to 1, and the most active options were the January 2022 52.5-calls. Over 13,000 of those traded for about $2.66 on average," Michael Khouw, chief investment officer at Optimize Advisors, said Monday on CNBC's "Fast Money." Those calls break even at a stock price of $55.16, or roughly 31% higher from where the shares closed out Monday's session. The stock has fallen from $70.90 to roughly $42 this year, so those calls represent a bet that Exxon Mobil can recover about 50% of those losses t...