Weekend Player subscribers scored a 178% profit with our recommendation
Yesterday, subscribers to our Schaeffer's Weekend Player service scored a 178% profit with our recommended Akamai Technologies, Inc. (NASDAQ:AKAM) February 110 call. Their patience paid off, as it took roughly three months to see such a hefty return. Below, we'll explain why we recommended the bullish position, and how the trade played out so quickly.
At the time of our recommendation in November, a solid earnings report was keeping wind at AKAM's back, pushing it near an all-time high and taking its year-to-date gain up to 31% -- well outperforming the SPDR S&P 500 ETF Trust (SPY). Despite this outperformance, there were multiple contrarian signals flashing for the cloud computing stock.
Most notably, options traders and analysts were both bearish on the equity. At the time, AKAM's Schaeffer' put/call open interest ratio (SOIR) of 1.10 ranked higher than 76% of readings, suggesting a put-bias amongst short-term options traders. What's more, 11 of 21 covering brokerages rated the equity a "hold" or worse. Plus, short interest had jumped 60% within three months, and the shares sold short represented 7% of Akamai Technologies stock's total available float.
In the time since our recommendation, the stock continued to churn higher. An early January pullback was saved by the $114 level, and AKAM climbed to an all-time high of $129.17 by Feb. 9. Akamai Technologies stock now sports a 42.9% year-over-year lead, and is up 6.2% in 2024.
