Options Trading News

June 12, 2013  Wed 9:42 AM CT

A big put trade is looking for Akamai Technologies to continue its recent decline.

optionMONSTER systems show that a trader bought 4,000 January 45 puts for $6.45 and sold the same number of January 35 puts for the bid price of $2.15. The volume at each strike was more than the previous open interest, indicating new activity.

This vertical spread costs the trader $4.30 to open, which will be lost if it is held until expiration and AKAM remains above $45. The maximum gain is $5.70 if shares are below $35. (See our Education section)

This is an expensive put spread, but it is in the money. AKAM is down 1.8 percent to $43.06 this morning. The cloud-computing company was at a high above $48 just under a month ago but below $35 at the end of April before the last earnings report.

More than 9,600 AKAM options have changed hands overall today, compared to its daily average of just 2,152 in the last month. 
Share this article with your friends


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »