Admitting defeat is half the battle
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Admitting defeat is half the battle

Henry Gambell
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Despite my bearish sentiment on the market as a whole and the fact that there is plenty of underlying reason for the test of our lows in the S&P 500, I'm not going to fight the trend. Since the end of August we've had a vicious rally offering only 1 or 2 pullbacks for those wanting to get long. Though this would've been a good trade, I'm working more towards avoiding the indexes, and finding the true strong performers of this market.

One great stock to do this with is Citrix. Many have heard the name and even more use their products on a daily basis. They specialize in a wide range of technology solutions and even helped Microsoft code their remote desktop protocol. These guys have been in the business for a while, and I want to take part of this new strong trend producing new 52 week highs.

This is uncharted territory for this stock, and I'll be using ATR (average true range) multiples to calculate stops & targets. My stop will be 2x ATR, right around $66.30. For the two targets, I'll be using 2x and 3x, $72.90 & $74.50.

Trade described: Buy OCT CTXS 65 Calls for $5.50

Positions at time of publication: Bidding For Position in CTXS

 Symbol  CTXS
 Action (Buy to open/Buy to close/Sell to open/Sell to Close)  Buy to Open
 No. of contracts (where applicable)  1
 Expiration month  OCT 2010
 Strike price  65
 Type (Stock/Call/Put)  Call
 Trade price  5.50
 Spread (better than/none)  xxxxxxxxxxxxxxxx
 Position?  Bidding For
 Chart Source?  Trade Station
 Stop  66.30
 Target  72.90 & 74.50

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