Calls give Citrix some time to rally

Traders are looking for Citrix Systems to rally this year before the end summer.

More than 5,100 September 57.50 calls were bought on Friday for $4.70 to $5.15, including a single print of 4,500 that went for the ask price of $4.80, according to optionMONSTER's Heat Seeker tracking system. This is clearly fresh buying, as open interest in the strike was a mere 18 contracts before the session began.

These long calls lock in the price where the stock can be purchased through mid-September 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 $57.50. (See our Education section)

CTXS rose 1.94 percent on Friday to close at $55.28 it tries to recover from recent losses. The software company gapped down from the $58 level at the end of January after missing revenue estimates on weak cloud-computing sales.

Total option volume topped 15,200 contracts on Friday, triple its daily average for the last month. Overall calls outnumbered puts by 6 to 1, a reflection of the session's bullish sentiment.

More From optionMONSTER