By Mike Yamamoto of OptionMonster
NEW YORK -- Citrix Systems (CTXS) pulled back after a strong earnings report last week, but the bulls came back Wednesday.
OptionMonster's tracking systems detected the purchase of 5,000 June 65 calls in one block for the ask price of 60 cents. That volume surpassed previous open interest of 4,322 contracts, indicating that new money was put to work.
These long calls lock in the price where the stock can be purchased through mid-June 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 $65.
Citrix shares gained 1.61% to $59.31 on Wednesday. The cloud-computing company shot above $62 from $56 last Thursday after quarterly results beat on the top and bottom lines, but it then retreated for the next three sessions.
The sale of almost 3,000 September 60 puts for $4.90 was also detected by our scanners, reflecting a belief that any losses will be limited in the share price. Wednesday's two option trades pushed total volume in Citrix to more than double its full-session average for the last month.
Yamamoto has no positions in CTXS.