Options Corner: AKAM Ahead of Earnings

Why It Matters

The setup matters for traders because the sharp run-up and limited near-term support create asymmetric risk into earnings; a suggested short put vertical (Mar 20 95/90 for a $1.20 credit) illustrates a yield-oriented, defined-risk way to express neutral-to-bullish conviction while capping losses. Manage positions actively since a move near the edge of the expected range could invalidate the trade.

Summary

Akamai (AKAM) has bucked the weak software sector, rallying sharply above prior resistance near $105 with an intraday high around $113.50 and leaving few nearby horizontal supports aside from a steep upward trendline and a 5-day EMA near $106. Volume profile shows concentrated activity back near $86–$90, while moving averages are diverging as price sits above all of them. With earnings due today, expected option move to the March 20 expiration is roughly ±16%, prompting defensive option strategies rather than outright directional bets.

Original Description

Rick Ducat dials up the chart of Akamai (AKAM) as investors await the tech company's upcoming earnings print. Rick shows what technical patterns have led to the stock's meteoric rise over the last several weeks even amidst the recent selling pressures hitting the software stock group. Later, Rick composes an example options trade using a short put vertical strategy. He explains the bullish nature of the trade and ways to manage it following Akamai's earnings event.

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