I would like to make another suggestion on a stock that is oversold. And I mentioned on John's webinar today.
The stock is Citrix Systems Inc. (CTXS).
CTXS reported on October 22nd with an earnings beat. And from a technical standpoint, it is oversold.
My suggestion is going to be a debit spread. And I am I going to suggest you trade the December 4th expiration.
This gives the stock about two weeks to make a move into earnings.
Here is how you open the position:
Buy to Open December 4th - $115.00 Call for $3.60
Sell to Open December 4th - $120.00 Call for $1.60
The net debit will be $2.00 per spread.
Based on the tracking portfolio, I suggest you limit the trade to a 5 lot or 1% of the portfolio.
The maximum gain on a five lot would be about $1,500 or 150%.