Looking for a Gap Fill in Akamai

Now that earnings are past for $AKAM – and the reaction was swiftly down – I have been reviewing the chart to see what the next move will be from a probability stand point. In looking at the Daily chart, price seems quite interested in filling the Gap above:

AKAM_Gap_fillThere are several ways to play this from a Bullish perspective:

  • Long the stock, use your normal Stop setting
  • Long a Call Spread (go out to March at least, February expiration is next Friday so too close in my opinion)
  • Short a Put (or Put Spread). This lowers your cost basis for stock entry
  • Long a March/February Call Calendar