Akamai Technologies (AKAM) seems to have resumed its uptrend after a nice pullback to the 50-day EMA as well as pop in implied volatility. A bull put spread allows you to gain from the positive Delta as well as the fall in Vega. The position also helps to hedge the portfolio, which has a lot of a short Delta bias right now.
Earnings are off to strong start as Alcoa (AA) was able to beat on the top and bottom lines after the close yesterday. The market is gapping higher here this morning and we do expect the market to top out around the 1,090-1,100 area as investors wait for earnings from Intel (INTC) after today’s close.
SELL -23 VERTICAL AKAM 100 AUG 10 40/39 PUT @.27 LMT