Trade Alert - (AKAM) May 15, 2020 - EXPIRATION-TAKE PROFITS
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Alert - Akamai Technologies, Inc. (AKAM) – EXPIRATION
EXPIRATION of the Akamai Technologies, Inc. (AKAM) May 2020 $80-$85 in-the-money vertical BULL CALL spread at $5.00
Closing Trade
5-15-2020
expiration date: May 15, 2020
Portfolio weighting: 10%
Number of Contracts = 22 contracts
I was never worried about this trade.
Akamai (AKAM) dropped following a perfect earnings report and gave us an optimal entry point so we executed a deep-in-the-money call spread.
At one point, I was thinking about doubling up before Akamai exploded into the mid-100 range. This trade went as smooth as it could ever go.
The recent mini sell-off has brought Akamai back into the mid-90s range, and I am even inclined to execute another call spread on Akamai.
Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally.
Akamai had revealed a top-and-bottom-line beat for the first quarter, with Q1 Non-GAAP EPS of $1.20 beating forecasts by $0.04; and revenue of $764.3M (+8.2% Y/Y) beating by $14.55M.
The company reported superb 1Q results and 2Q guidance that was well above the Street’s expectations, and the reaction was a little bit of a “sell the news” response.
If you look at a 1-year chart, Akamai has rock-solid support at $85 going back to last summer.
Good job and on to the next trade.
Here are the specific trades you need to execute this position:
Expiration of 22 May 2020 (AKAM) $80 call at………….………$18.50
Expiration of 22 May 2020 (AKAM) $85 call at……..........…….$13.50
Net Proceeds:…………….....................………..…….………..…….....$5.00
Profit: $5 - $4.25 = $0.75
(22 X 100 X $0.75) = $1,650 or 16.5%
