Monday, January 25, 2010

Citrix Options Shadow VMWare Earnings (CTXS, VMW)

Stock Assault 2.0 - Artificial Intelligence Stock Market Software

VMWare Inc. (NYSE: VMW) soared in after-hours trading, and in our earnings summary we already noted that that this sets a very high bar for Citrix Systems Inc. (NASDAQ: CTXS) as a result of the strong virtualization market.  We did not see this options trading in our reviews throughout the trading day, but it turns out that options traders were making very bullish options bets in Citrix today potentially as a virtualization trade.

In the FEB-2010 $45.00 CALLS, there were 14,614 contracts traded versus an open interest of a mere 5,840 contracts.  That is larger than the entire open interest.  The $40.00 PUTS saw some 1,194 contracts trade versus an open interest of 3,135 contracts.  The MAR-2010 $45.00 CALLS traded some 1,466 contracts versus an open interest of 919 contracts.

It turns out that VMWare options for FEB-2010 were very active today, but not very active in any single contract. VMWare rose 18% to $49.61 on 1.9 million shares in the after-hours session.  Citrix traded only 23,178 shares during the after-hours session, butt the after-hours last trade was $41.90 after closing at $41.15.

(after-hours reporting)


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