Citrix Systems, Inc. (CTXS)

[Just1MoreUpTick]

In the past year, the stock has hit a 52-week low of $50.21 and 52-week high of $88.49. Citrix Systems (CTXS) stock has been showing support around $63.54 and resistance in the $71.40 range. Technical indicators for the stock are Neutral and S&P gives Citrix Systems (CTXS) a neutral 3 STARS (out of 5) hold rating. For a hedged play on Citrix Systems (CTXS), look at the Mar '12 $70.00 covered call for a net debit in the $61.67 area. That is also the break-even stock price for this trade. This covered call has a duration of 94 days, provides 7.08% downside protection and an assigned return rate of 13.51% for an annualized return rate of 52.45% (for comparison purposes only). A lower-cost hedged play for Citrix Systems (CTXS) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Citrix Systems (CTXS) Jan '13 $40.00 call and selling the Mar '12 $70.00 call for a total debit of $26.45. The trade has a lifespan of 94 days and would provide -0.12% downside protection and an assigned return rate of 13.42% for an annualized return rate of 52% (for comparison purposes only). Citrix Systems (CTXS) has a current trailing average dividend yield of 0%.