Calls give Citrix some time to rally

Mike Yamamoto (mike.yamamoto@optionmonster.com)
February 10, 2014

Traders are looking for Citrix Systems to rally this year before the end summer.

More than 5,100 September 57.50 calls were bought on Friday for $4.70 to $5.15, including a single print of 4,500 that went for the ask price of $4.80, according to optionMONSTER's Heat Seeker tracking system. This is clearly fresh buying, as open interest in the strike was a mere 18 contracts before the session began.

These long calls lock in the price where the stock can be purchased through mid-September no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $57.50. (See our Education section)

CTXS rose 1.94 percent on Friday to close at $55.28 it tries to recover from recent losses. The software company gapped down from the $58 level at the end of January after missing revenue estimates on weak cloud-computing sales.

Total option volume topped 15,200 contracts on Friday, triple its daily average for the last month. Overall calls outnumbered puts by 6 to 1, a reflection of the session's bullish sentiment.

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