May 26, 2020 - MDT Alert (CTXS)

Today, I would like to make a suggestion on a stock that appears to be ready to bounce.

The stock is Citrix Systems, Inc. (CTXS).

I am going to suggest a debit spread, but I will suggest using short-dated options.

Here is the trade:

Buy to Open July 12th - $138.00 call @ $3.40

Sell to Open July 12th - $142.00 call @ $2.05

The net debit will be $1.35 per spread, with a maximum gain of $2.65 per spread.

Based on the nominal portfolio, limit the trade to 6 spreads or about .8% of the portfolio.

I am suggesting you limit the buy in to less than 1% of the nominal portfolio because the expiration date is only two and one-half weeks away.

/by

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May 26, 2020 May 27, 2020 - Quote of the Day

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