Best Stock on the Market

Put Options on AKAM on 4/3/2017

Bearish Flag on AKAM with 200-day MAAkamai Technologies, Inc. (AKAM) provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally.

The company offers Web and mobile performance solutions, such as Ion, a situational performance solution that consists of an integrated suite of Web delivery, acceleration, and optimization technologies; Dynamic Site Accelerator that helps in consistent Website performance; IP Application Accelerator to enable enterprises to deliver Internet Protocol-based applications; Global Traffic Management, a fault-tolerant solution; Image Manager that automatically optimizes online images; and Cloudlets, which provides self-serviceable controls and capabilities.

It also provides cloud security solutions, including Kona Site Defender, Bot Manager, Fast Domain Name System, Prolexic Routed, and Client Reputation; enterprise solutions comprising Enterprise Application Access and Akamai Cloud Connect. In addition, the company offers media delivery solutions, such as adaptive delivery solutions, download delivery solutions, media delivery acceleration solutions, media services, media analytics, and NetStorage, a cloud storage solution.

Further, it provides network operator solutions, including Aura Licensed CDN suite of solutions, Aura Managed CDN solutions, and Intelligent DNS Solutions; and professional services and solutions. It sells its solutions through direct sales and service organization; and through active channels. 

Shares have fallen through their 200-day moving average and have formed a bearish "flag." In fact, Akamai shares have been on a path of decline since the announcement of fourth-quarter full-year 2016 results on Feb 7, when management’s near-term guidance rattled investors. Margins are expected to remain under pressure. Last week shares further declined after the company annnounced that it will purchase cloud-company SOASTA, and expects the transaction to reduce its EPS by  6–7 cents. Lower share prices are expected.

 

52-Weeks Trading Range: $47.80 - $71.64

Last Trade: $59.70 

Trade

  • Buy 1 April $60.00 Put at $1.00
  • For a net debit of $1.00

Profit/Loss Analysis

  • Breakeven at $59.00
  • Maximum profit is unbounded
  • Maximum loss is ($100.00) at strike of $60.00

Closing Summary

  • Sold 1 April $60.00 Put at $0.00

Position closed on 4/21/2017 at price of $0.00 with a -100.00% loss in 18 days.

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