AKAM – Akamai Technologies (Last:26.96)

Weeks have passed since I first suggested shorting February 29 calls (UMUBK) for around 0.95 against stock we already own.  The calls now look like they’d be a good sale for around 0.70-0.75.  The price target on the underlying is still 27.15, so we’re close enough to do the trade.  You should also buy a February 24 put (UMUNZ) for each round lot of stock you hold.  Try using a day-order of 0.35 to accomplish this.  I expect Akamai to make a tradable top at or near the target, but whatever the stock does, we have a built in profit of around $1600 per round lot at these level, since our cost basis is $11.01.