If you need your website performance improved, Akamai is the company for you. Akamai provides products and services for accelerating Internet delivery. Akamai claims it handles 20% of Internet traffic.
Akamai’s stock price is up about 100% from its low in December of 2008. Akamai’s stock price took a pretty big hit on high volume near the end of July as a result of a poor earnings outlook.
Akamai’s October 21 call option volume was through the stratosphere yesterday. This call option was slightly out-of-the-money and there’s only three days to expiration, so apparently somebody is very bullish on Akamai. November call options with strike prices of 21 and 22 were also very high yesterday. Put option volume appears slightly higher than normal.
|Sign up now for PowerOptions 14-day free trial|
The Strike of Pain for Akamai for October expiration is at a strike price of 18 which is below the current stock price for Akamai. This is a bearish indicator for Akamai, but if the high option volume for Akamai continues in a similar manner as yesterday, then the Strike of Pain will increase. The Strike of Pain represents the strike where the options buyers will lose the most money and the option sellers will gain the most money at expiration.
|See what the stock option experts are doing
Sign up now for PowerOptionsApplied 30-day risk free trial
The interest in Akamai may stem from Cisco’s (CSCO) announcement to acquire Starent Networks (STAR) yesterday. Starent provides hardware and software for delivering multimedia to mobile subscribers. The gist would be that if a company is interested in acquiring Starent, then a company might also be interested in acquiring Akamai. Akamai also has an earnings report due October 28, but this is after October options expiration, so this is probably not the reason for the interest in Akamai’s call options yesterday.
| Free stock option newsletter
» return goal > 2% / month
» works in any market
A covered call investing position for Akamai for November looks attractive with a potential return of 5.3%. The time frame for realizing the potential return is only 38 days. The call option of interest would be the November 21 with ticker symbol UMUKT.
| Want to protect your portfolio/401K from market downside?
yet still benefit from market upside
Sign up now for the free Sketch
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions’ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
| Learn how to profit from winner stocks
and protect yourself from loser stocks
Download free Trade Simulator now
| Learn to trade like the pros
Signup for free Webinars now
PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags] Strike of Pain, AKAM, Akamai Tech. Inc., CSCO, Cisco Systems Inc., LLNW, Limelight Networks Inc., LVLT, Level 3 Comm. Inc. [/tags]