Stock markets have taken some twists and turns now that the summer trading season is over and investors focused on dividends should be watching the banking sector for the next clues to profitability. In terms of volatility, stocks like Citigroup (C) find themselves in a position where the Federal Reserve could significantly alter interest rate expectations and any major changes here could bring an end to the strong rally that is currently in place. For Citigroup, there are some real risks here, as the market has showed a clear willingness to ignore good earnings news and sell while valuations remain at elevated levels. There is a strong possibility that Citigroup has overshot its mark and is now ready to head lower as the prior rallies have far outpaced what has been posted in real revenues over the last quarter. Moreover, the stock’s meager 1.74% dividend yield is not much of a selling point when compared to names like Wells Fargo & Co. (WFC). So if we continue to see dovish policy intentions outlined by the Fed, this is an issue that could exacerbate the current selling pressure in Citigroup if investors flee to higher-yielding alternatives. Our stance here is to use rallies to establish bearish options strategies in C as a clear top now looks to be in place above the 75 level.