Thursday, May 13, 2010

OPTIONS TRADING: Near-The-Money! ~ Akamai Technologies, Inc. (Public, NASDAQ:AKAM)

... read image from bottom to top.

... and from cover to cover ?!?

NearTheMoney: strike price options trading. 
 (working title, new book coming soon) (iOwn)

@NearTheMoney (coming soon)

NTM:  Near-the-Money .... a CALL option is near-the-money if the underlying security (common stock) is "slightly" below the strike price. (eg: $AKAM common @ $39.77 ... strike = $40 ... options contracts are near-the-money

the TRADE:   get long (BUY) "slightly" out-of-the-money calls, and watch them go from near-the-money ..... to ..... IN-THE-MONEY!!! 

ATM: At-the-money

An option is at-the-money if the strike price is the same as the spot price of the underlying security on which the option is written. An at-the-money option has no intrinsic value, only time value.

ITM: In-the-money

An in-the-money option has positive intrinsic value as well as time value. A call option is in-the-money when the strike price is below the spot price. A put option is in-the-money when the strike price is above the spot price.

OTM: Out-of-the-money

An out-of-the-money option has no intrinsic value. A call option is out-of-the-money when the strike price is above the spot price of the underlying security. A put option is out-of-the-money when the strike price is below the spot price. (ref: Moneyness)

p.s. follow BOTD on twitter. @BuyOnTheDip (click here) 


BUY ON THE DIP said...

May 12, 2010 9:16 AM EDT
Merriman Cuhran Ford reiterates its 'Buy' rating and $40-$48 valuation range on Akamai Technologies Inc. (Nasdaq: AKAM) following the content delivery summit. The firm said revenue growth in M&E segment should continue to re-accelerated and competition stabilized.

An analyst states, "Feedback from the Content Delivery Summit supports our bullish thesis on Akmai that the company has closed the price gap relative to its competition, stemmed losses in market share and positioned itself to benefit from volume growth in the industry."

BUY ON THE DIP said...

Posted on 05/13/10 at 10:54am by Ed Liston
Analysts Srinivas Anantha and John Merrick at Oppenheimer have released an update on Akmai Technologies (NASDAQ: AKAM). Earlier this week, analysts attended the Streaming Media East conference in New York.

According to analysts, the key takeaways from the conference include price declines in CDN for large volume deals starting to moderate, rapid advances in tech that have led to the removal of barriers to online video delivery, and improving content monetization prospects.

Analysts believe that the advancing technological capabilities and changing consumer preferences will result in the rapid adoption of online video, accelerating CDN traffic and top-line growth over the coming quarters. Akmai in particular stands to benefit from these changes.

Analysts at Oppenheimer have maintained their Outperform rating for Akmai Technologies. The price target for the company has been raised from $40 to $47.

BUY ON THE DIP said...


BUY ON THE DIP said...

p.s. sleep well.

Profit potential: Unlimited
Risk potential: Limited to the options premium

BUY ON THE DIP said...

Citi reiterates a 'Buy' on Akamai Technologies Inc (Nasdaq: AKAM), price target $44.

Citi analyst says, "Per our 4/28 Upgrade: 1) What we thought would be a 2011 catalyst (HD Video adoption) has arrived earlier than expected and should help power AKAM’s fundamentals over the next two years; 2) AKAM has still not seen a macro/market recovery in its International markets, but this should appear over the next 2-4 quarters; 3) Video streaming (HD or not) is just now crashing into the mainstream given Netflix (Nasdaq: NFLX) and Apple’s iPad (Nasdaq: AAPL) (both of which are AKAM customers); & 4) AKAM will begin to anniversary aggressive pricing policies later in ’10, meaning year-exit revenue growth could be quite robust."