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Technology Stocks : Citrix Systems (CTXS)

CTXS 103.90

0.0%

Nov 2 5:00 PM EST

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To: cardiologist to be who wrote (5067)	2/24/1998 4:29:00 PM
From: Al Chechatka	Read Replies (1) of 9068

I think much of what we are seeing is profit taking from people who got into CTXS a year ago right before the fall. Remember there was a selloff in late Dec '96 - Early '97 (before the Microsoft rumor and turmoil) I am sure much of that was simple profit taking. We may be in for some turbulent times as far as price for the next three months (people cashing out when they bought the stock at $6.50 to $10 a share). Friday is the one year anniversary of the Citrix Crash. 22.5 million shares (split adjusted) traded that day alone. Some of those people will take profits. For the momentum player, sell short(write) the SEPT 43 5/8's Put. They are currently selling for 8 1/4. And with that cash buy the Sept 43 5/8's Call (which is currently 7 1/4). Remember each contract has 150 shares, due to the split. So if you sell one contract of the naked puts, you have to have $6534 in cash in your account. What is nice about this is if this downward move is profit taking, it has 2 earning cycles to ramp up for. The beauty of these is if the stock stays flat for the next 2 months, both the call and put will go down in price. Any upward movement, the put goes down (good you sold that short) and the call goes up. Remember you don't have to wait until Sept to close your positions. I've been doing that for months with great results. The worse case scenario, is they put the stock to you at 43 5/8's in Sept...and that is practically what you are buying them for today (Unfortunately, the 40's aren't there yet, maybe they will be tommarow after today's run at 40). I personally am waiting until Friday to see what happens on the anniversary of the crash date. And the anniversary date could be a psychological test, especially with the pricing of the new products not hashed out yet and the uncertainty of Microsoft's t-share product.

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