$C bulls quadruple their money

Citigroup has been en fuego for months, and option traders have been making bank on the name every step of the way.

On Sept. 8, Investitute’s tracking systems detected the purchase of 4,000 November $67.50 calls for $2.10 as part of a bullish roll with shares at $66.57. This was clearly a new position, as volume was well above the strike’s open interest of 2,196 contracts.

Those calls sold for as much as $8.25 at the end of today’s session, 4 times their purchase price. The stock rose 13.4 percent in the same time frame, underscoring the type of leverage that can be obtained with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

It was the third winning Citigroup call trade posted on Investitute in as many days. Investitute co-founder Pete Najarian, who has been citing the upside potential for the name all year, chose for his final trade on CNBC’s “Fast Money” show Wednesday night and again on the network’s “Halftime Report” yesterday.

C reached another 52-week high of $76.02 in the morning before closing at $75.64, off 0.11 percent on the session. Citigroup has outperformed other large banks as the financial sector anticipates rising interest rates.