Akamai Technologies is working its way higher today, and one
investor is adjusting a winning trade.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of about 7,800 May 52.50 calls for $2.85 and the sale of a similar
number of February 48 calls for $2.95. Volume was below open
interest in the 48s, so it appears an existing long position was
rolled up in price and out in time.
lock in the price where shares can be purchased in the
Internet-caching company, letting investors cheaply control gains
in the stock. Moving from the February calls to the May contracts
provides an additional three months of exposure to potential
upside. The trader also recovered $0.10 of capital.
Another benefit of today's trade is that it reduces the risk of a
bad earnings report on Feb. 5 because the investor has a
and more time value in the position. (See our
AKAM rose 0.43 percent to $49.39 in afternoon trading. It fell in
October after providing a weak forecast but found support at its
200-day moving average and has been working higher since.
Total option volume is 9 times greater than average in the session,
with calls outnumbering puts by 18 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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