I have traded CTXS religiously for a long time. I just wanted to show this daily chart of CTXS. I believe the order flow has reversed from the buy side to the sell side just as it did where notated on the chart. I bought June puts from $39.80-$39.00. I like the trade from a risk reward perspective, $40.50 is my MENTAL stop and gives a little wiggle room in the gap. Im risking $1.00 loss for a $12.00 gain roughly.
I will keep my short position in tact until my final target is hit or approached, but I will also play the thrust up patterns on the long side along the way. This allows me not to micromanage my core short position the whole way down and profit on the long side when circumstances dictate. This really compounds my returns and keeps me from sweating the bounces. Of course this strategy is only valid as long as $40.50 is not hit and if it does get hit soon, then as I said I believe the trend has changed and will keep my eye on it for the weakness I presume is percolating.
One last note from a broader perspective. This equity tends to top at the same time as the Q's or slightly before and the correction is much deeper and longer.
