Akamai Technologies, Inc. (AKAM) Surge Tempts Short-Term Option Bulls

Speculation is swirling over a potential Akamai Technologies, Inc. and Alibaba Group Holding Ltd deal

Nov 14, 2014 at 11:49 AM
facebook X logo linkedin

Call players have set their sights on Akamai Technologies, Inc. (NASDAQ:AKAM) today, with the contracts crossing the tape at a rate almost seven times the intraday average. Amid this accelerated activity, the stock's 30-day at-the-money implied volatility has shot 10.1% higher to 25.3%, signaling elevated demand for AKAM's short-term options. In fact, the equity's five most active options all expire within the next week.

Drilling down, AKAM's weekly 11/14 61.50-strike call has seen the most action, with 2,180 contracts traded at last check. The majority have crossed at the ask price and volume outstrips open interest, making it safe to assume new positions are being purchased.

Thanks to today's 2.4% pop that has the stock lingering near $61.89, these calls have already surpassed the traders' breakeven mark of $61.71, which is the strike plus the volume-weighted average price (VWAP) of $0.21. Profit will accrue on a continued move north of here, while losses are limited to the initial premium pad, should AKAM settle below the strike at tonight's close, when the series expires.

Elsewhere, buy-to-open activity has been detected at AKAM's November 59.50 and 61.50 calls, which expire at next Friday's close. Based on the respective VWAPs of $1.86 and $0.75, breakeven for the front-month call buyers is $61.36 and $62.25.

As noted, Akamai Technologies, Inc. (NASDAQ:AKAM) is trading solidly higher today, as rumors swirl over a potential partnership with Alibaba Group Holding Ltd (NYSE:BABA) -- which is up 0.1% following yesterday's retreat from record highs. However, this is just more of the same for a stock that's tacked on nearly 20% since taking a sharp bounce off its 320-day moving average in mid-October.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI