When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Alert - Akamai Technologies, Inc. (AKAM) – BUY
BUY Akamai Technologies, Inc. (AKAM) June 2020 $88-$93 in-the-money vertical BULL CALL spread at $4.45
Opening Trade
6-5-2020
expiration date: June 19, 2020
Portfolio weighting: 10%
Number of Contracts = 22 contracts
One of my favorite cloud plays, Akamai (AKAM) has dropped big today as tech is consolidating and this is a name I have wanted to get back into for a while. Akamai was trading around $107 just a few days ago and has major support just under us.
Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally.
This is a short term bet that Akamai will stay above $93 in the next 15 days.
Cloud stocks have been the all-stars on the Dream Team of late.
Zoom Video Communications, Inc. (ZM) experienced a quarterly revenue increase of 169% and I believe the catch-up trade in non-tech won’t mean that tech will be left behind.
Any weakness has been met with a torrent of buying and it’s hard to imagine that even with some mild consolidation, investors won’t buy any weakness in the best cloud names.
We added a bull call spread in Salesforce (CRM) yesterday and I do believe in adding on quality cloud names on any dip for a sideways to moderate bullish move. We are still in that climate.
Our Google call spreads is on pace to finish with full profits of over $4,000.
If you do not trade options, pass on this trade.
Here are the specific trades you need to execute this position:
Buy 22 June 2020 (AKAM) $88 call at…………………$11.40
Sell short 22 June 2020 (AKAM) $93 call at………….$7.00
Net Cost:……………………..…….…..……..…….....$4.45 ($4.40 is midpoint)
Potential Profit: $5 - $4.45 = $0.55
(22 X 100 X $0.55) = $1,210 or 12.10%
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here at
http://www.madhedgefundtrader.com/ltt-vbpds/
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
