AKAM – Akamai Technologies (Last:27.19)

Against the round lot of stock we hold for 11.01, we shorted a February 29 call yesterday for 0.60 and bought a Feb 24 put for 0.35.   The price we received for the call was less than I’d anticipated, but because it’s a covered write, and because have such a large profit built into the position already, the extra dime we did not receive won’t make much difference. Now, I’d suggest working the P&L numbers with the stock at various prices on February 19, when the options expire.  As you will see, our gain on the position will increase under a wide variety of circumstances, and if Akamai falls apart we’ll be well protected.