News hit the tape a bit ago that AMZN is launching a new virtual desktop Amazon Workspaces, as well as Appstream (which competes with the Netscaler business for CTXS). They say they will be priced at half the price of their competitors. Given how ruthless Amazon can be against its competition on price when they enter a new market, we tend to believe this could be a significant piece of news as it relates to CTXS, which is trading near the lows of the day, down 6%, and down 7.5% from the highs today.
We have a calendar spread on in CTXS that up until the news was doing quite well worth double what we paid last month. Here’s that trade from Oct 21st (here) :
TRADE: CTXS ($57) Bought Nov / Jan 62.5 Call Calendar for 1.00
- Sold 1 Nov 62.50 call at .55
- Bought 1 Jan 62.50 call for 1.55
With the position almost a loser, we are going to close it and move on as our ability to assess the news in real time and guess the streets reaction doesn’t warrant letting a winner turn to a loser.
ACTION: Sold to close CTXS ($56.50) Nov/Jan 62.5 call calendar at 1.00, what I paid for it 🙁