Sell Akamai Calls for a Swift 23% Gain

By Linda McDonough • July 20, 2017

Sell to close the July 28, 2017 call on Akamai Technology (AKAM) with a strike price of $52.5 at $2.40 or higher Symbol (AKAM170728C52.5).

Take a quick 23% gain in these calls in less than a month. They expire on July 28 so unless the stock moves much higher their value will deteriorate as we get closer to that date.

I’m still very bullish on Akamai and we own it in the Profit Catalyst Portfolio but these calls have a limited shelf life as they expire in eight days.

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Roger Dehring

07/20/17 ‐ 2:32pm ET July 20, 2017 at 2:32pm ET

I got out of my AKAM calls earlier this week, Linda,

Didn’t get as good a price had I waited, selling for $2.20.

But a quick profit is a profit! Thanks,

roger

AlexB

07/20/17 ‐ 2:35pm ET July 20, 2017 at 2:35pm ET

Hello Linda,

With current trade occurring at $2.38 do you suggest holding out for the $2.40 above or chase the value down after a certain time without filling?

Thanks,

Alex B

Linda McDonough

07/21/17 ‐ 8:59am ET July 21, 2017 at 8:59am ET

Alex,
I would sell them today. It’s always tricky to get the limit price perfect on options trades. Usually, I would give $.05 leeway on the limit and especially with the expiration so soon, I would be more flexible. Of course, if the stock races up next week, I’ll be eating my words but I think it’s better to be safe and book a profit.
Best,
Linda

John N

07/20/17 ‐ 2:38pm ET July 20, 2017 at 2:38pm ET

I decided to sell earlier today for $2.38.
Bought it at $1.77. ? 25% profit

Linda McDonough

07/21/17 ‐ 9:00am ET July 21, 2017 at 9:00am ET

Well done!

John

07/21/17 ‐ 1:38pm ET July 21, 2017 at 1:38pm ET

Linda ,

Are we doing anything with the GPS and CHD ?

Thanks
John

Linda McDonough

07/23/17 ‐ 2:01pm ET July 23, 2017 at 2:01pm ET

John,
There’s really nothing to be done. Both of these options expired worthless and had very little value if we had tried to sell them earlier. I hoped that Gap would close above $24 which would have given subscribers a small profit but it just didn’t work out. This is the painful but real risk of trading options. The flipside is the RGR puts which are up 80% since purchase two weeks ago. As always, I’m looking for more of the latter than the former.
Best,
Linda

John

07/23/17 ‐ 11:37pm ET July 23, 2017 at 11:37pm ET

Linda,

Thanks for the reply. That was my confusion. Im doing credit spreads with Jim and as you know we sometimes roll those. My lack of experience and knowledge. My mistake.

John

Phil Ash

07/25/17 ‐ 3:31pm ET July 25, 2017 at 3:31pm ET

Just closed AKAM calls at $2.72 for a 39% gain in 28 days. Thanks

Linda McDonough

07/25/17 ‐ 4:41pm ET July 25, 2017 at 4:41pm ET

Phil,
I may have to bring you on board as my timing specialist – well done!
Linda

Mark F

07/26/17 ‐ 8:20am ET July 26, 2017 at 8:20am ET

I didn’t do as well as Phil but sold for $2.25. I paid $1.80 so still a nice gain. Thanks.

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