We blew out eight Citi December 25 calls (CLE) for a $120 trading loss, since Citi failed initially to get any lift from the release of less-than-disastrous earnings (only by current standards — the loss was more than $2 billion!) The stock eventually rallied, unable to ignore the general hysteria that carried most other stocks higher, but on its own, Citi looked like warmed-over crap yesterday. My hunch is that the stock will not only test the $12 low made last week, but break it and go much lower. For that reason, we’ll be looking to leg into a far-out-of-the-money calendar put spread, much as we attempted to do in GM just as it went into its recent death dive. Citi would be a great short for us at 18.02, a midpoint resistance on the hourly chart, but the stock has very seldom accommodated us by rallying to a fat target. In any case, stay tuned!