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.

4 comments:

Lauriston said...

I agree, I think AKAM earnings would have to be out-of-this-world for the stock to go up from here. It has come a long way and I think a great deal is baked in already. but who knows? maybe they have a surprise for us all. Also you point out the options are way inflated. I think with a tired market AKAM will have to work hard here...

Jim K said...

yep.. looking shabby this evening.

mike said...

Wow what a turn around today. The gamblers who bought feb 55 this morning made out like bandits.

Mike

Jim K said...

good for them.. often that's a far better way to do.. jump in in the morning if you have the conviction to!