Options Trading News

Citrix Systems has been grinding higher, and one investor remains bullish as earnings approach.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 1,440 January 85 calls for $6.92 and the sale of an equal number of January 105 calls for $1.72. Volume was more than twice open interest at both strikes.

The trade resulted in a cost of $5.20 and will earn a maximum profit of 285 percent if the maker of networking software closes at or above $105 early next year. CTXS hasn't seen that level since the peak of the dot-com bubble in March 2000.

Known as a bullish call spread, the strategy is popular because it lets investors leverage a move between two price points with limited risk. Investors also purchased more than 1,900 September 85 calls for $3 to $3.30 about an hour later, looking for a rally as well. (See our Education section)

CTXS is off 0.39 percent to $77.47 in afternoon trading but is still up 27 percent so far this year. The company is scheduled to report second-quarter earnings after the bell tomorrow.

Overall option volume is quadruple the daily average so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 5-to-1 ratio.