SEC Subpoenas Citigroup in AI Hedge Fund Probe; Heavy Call Buying Signals Bullish Bets
C sits 43% above its 52-week low of $92.96.
Summary
The SEC subpoenaed Citigroup as part of its investigation into AI hedge fund Situational Awareness, requesting records on the fund's trades, bank interactions during margin stress, and large portfolio sales. This is a new regulatory overhang for the bank, though the scope appears limited to a single fund's activity. Separately, heavy institutional call buying in Citigroup options—including $981K in Jan 2027 $77.50 calls and $815K in Dec 2026 $70 calls—suggests some investors are positioning for upside. The subpoena is a negative development, but the options activity indicates mixed sentiment. Traders will weigh the regulatory risk against the bank's strong recent earnings and $30B buyback program.
At the time of this announcement, C was trading at $132.58 on NYSE in the Finance sector, with a market capitalization of approximately $222.9B. The 52-week trading range was $92.96 to $147.96. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.