Sell Akamai Calls for a Swift 23% Gain
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
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
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AlexB
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
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
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John N
I decided to sell earlier today for $2.38.
Bought it at $1.77. ? 25% profit
Linda McDonough
Well done!
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John
Linda ,
Are we doing anything with the GPS and CHD ?
Thanks
John
Linda McDonough
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
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
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Phil Ash
Just closed AKAM calls at $2.72 for a 39% gain in 28 days. Thanks
Linda McDonough
Phil,
I may have to bring you on board as my timing specialist – well done!
Linda
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Mark F
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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