Tuesday, September 11, 2007

Trapped by my covered call on AKAM

AKAM

A while ago, when AKAM was in the low 20's, I sold a covered call on my stocks at a strike price of $30, way out the money and for a measly .90

Then one day AKAM popped above $32 from something like $28 within 5 minutes and never went back.

Now I can assume that comes August, somebody is going to pick up my shares for $30 (nice profit for me, but nowhere near what I'd make without that call). If I want to buy back the call, it would now cost me around 5.60.

I've been sitting on that decision for too long and everyday it seems like AKAM rises higher.

I cannot wait any longer and will take action either today of tomorrow. What action? I don't know yet, but I'll do something.