Posted http://boards.fool.com/Message.asp?mid=23790238&post=true
In case anyone wants to follow the Street's advice, why not get paid to do so.
April 25 Put options closed at .90 3 March
http://au.finance.yahoo.com/q/op?s=AKAM&m=2006-04
Trading costs aside that gives you $90 to place a limit order for every 100 shares you want to buy, e.g. 400 shares, you get $360 to wait.
- If AKAM keeps going up you get to pocket $360 and sell put the next month.
- If it goes down you have same risk as having bought the stock, except your cost is 24.10 (25-.9) instead of current 26.10.
- If it stays the same you pocket the $360.
Surely paying the right price is one of the main rules of successful investing and to me it appears like the analyst is simply trying to do that, buy at the right price.
I think AKAM is a great company and am currently long with Calls sold on 2/3 of position.
I may be way off track but has greed made you think the only direction AKAM can take is up? It might keep going up, but at some time it will have a fall, and it is then that I will be happy to buy more if the story is the same as now.
