Wednesday, February 7, 2007
Akamai (AKAM) Earnings Tonight
I think they beat. But there's no way I pay over $3 for the Feb 55 calls when the stock is trading at a little above $56. Upside looks limited to maybe a gain of $2.50 at most (the upper end of its intermediate trading channel. Dowside support is at the 50 day moving average at around 53-1/2. The Feb-March 55 calendar call spread is priced at about .90 FYI. As far as I can tell the Feb55 call buyers today are going to get killed unless the company posts blowout numbers ... like 7c above expectations. Analysts are expecting 26c on revenue of $121mln.