Option Trade 
Akamai Technologies, Inc. (NASDAQ:AKAM) Calls 
Tuesday, October 27, 2015

**OPTION TRADE: Buy the AKAM Jan 2016 75.000 call (AKAM160115C00075000) at approximately $4.00. Place a pre-determined sell at $8.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.60.

by Ian Harvey

October 27, 2015

Akamai Technologies, Inc. (NASDAQ: AKAM), a provider of content delivery and cloud infrastructure services for the delivery of content and applications over the Internet, is set to report third-quarter 2015 results today, October 27th, after the market closes, and is expected to report third-quarter profit above analysts’ average estimate. Revenue upside from the growth in over-the-top video streaming services is also anticipated.

The company had reported a negative earnings surprise of 6.38% in the last quarter. However, it has delivered an average positive earnings surprise of 3.68% over the past four trailing quarters.

Shares of Akamai Technologies, Inc. rose by 7.03% in the last five trading days and 6.83% for the last 4 weeks. Akamai Technologies, Inc. is up 2.34% in the last 3-month period. Year-to-Date the stock performance stands at 19.71%.

Key growth factors for the company include rising demand for cloud infrastructure solutions, security, mobile products and online video. Also, Akamai's partnerships with the likes of AT&T, IBM, Orange, Qualcomm, Swisscom, Korea Telecom, Türk Telekom, Bangkok Bank and others are expected to boost top-line growth going ahead.

The company recently expanded its partnership with Microsoft (MSFT) to offer content delivery network services for Microsoft Azure, which is expected to drive growth going ahead. Additionally, Akamai's content distribution network is being deployed by Apple (AAPL), which can be an important growth driver.

It is also an expectation that the company's strong foothold in the web application business to be a significant growth catalyst.

Many analysts have commented on the company rating. Equity Analysts at the Deutsche Bank maintains the rating on Akamai Technologies. The brokerage firm has issued a Buy rating on the shares. The Analysts at the ratings agency raises the price target from $77 per share to $80 per share.

The mean estimate for the short term price target for Akamai Technologies, Inc. stands at $78.38 according to 16 Analysts. The higher price target estimate for the stock has been calculated at $91.00. Also, the company received an average rating of 1.67 from 21 analysts. 14 have rated it as a strong buy.

Harvey’s Options Volatility Indicator

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

**OPTION TRADE: Buy the AKAM Jan 2016 75.000 call (AKAM160115C00075000) at approximately $4.00. Place a pre-determined sell at $8.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.60.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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