LIMELIGHT NETWORKS (LLNW)
EARNINGS RELEASE - JULY 20 (AMC)
THIS QTR: EPS: .01/share REV: 56.72/M
LAST QTR: EPS: 0 /share ACTUAL: 0 /share (BEAT)
NEXT QTR: EPS: .02/share REV: 57.28/M
FULL YR: EPS: .05/Share REV: 28.2/M
BEAT/MISS RECORD: 50% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) -15.66, -7.14, 28.2
EXPECTED JUMP MOVE THIS QUARTER: 8%
*** With market volatility at extremes there is greater risk in trading these events which may not react as they would under normal market conditions. Please take extra caution before trading.
Links To Latest News and Headlines
The wheels have started to come off the internet infrastructure stock party. Booming web traffic during the economic lockdown in the spring has started to moderate, and the first hyper-growth stock to be tamed was Fastly (NYSE: FSLY). Next up was Limelight Networks (NASDAQ: LLNW), which just endured a nearly 40% drubbing after posting third-quarter 2020 results mostly in line with its own expectations.
The content delivery network specialist's stock price dropped by more than 25% after third-quarter results revealed a surprisingly low gross margin.
Investors overreacted to a small earnings miss that sprung from a perfectly ordinary financing choice.
Limelight Networks is down 28% in trading Friday after it reported third-quarter 2020 results on Thursday, despite higher revenues.
Limelight Networks (NASDAQ: LLNW) shares experienced unusual options activity on Friday. The stock price moved down to $4.39 following the option alert. * Sentiment: BULLISH * Option Type: SWEEP * Trade Type: CALL * Expiration Date: 2021-01-15 * Strike Price: $7.00 * Volume: 597 * Open Interest: 2430Three Indications Of Unusual Options Activity Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset.Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being “out of the money”. This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin.Understanding Sentiment Options are “bullish” when a call is purchased at/near ask price or a put is sold at/near bid price. Options are “bearish” when a call is sold at/near bid price or a put is bought at/near ask price.These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.Using These Strategies To Trade Options Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * 12 Technology Stocks Moving In Friday's Pre-Market Session * 12 Technology Stocks Moving In Thursday's After-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
StockJumpers analysis and trade plans are finalized and uploaded generally one house before market cloase (3PM EST) for most events unless noticed.
“I’m sorry, this content is for members only. To access this content, you must log in with your membership credentials – OR if you are not a member yet, visit our registration page here and get signed up Looking forward to having you on-board ASAP”
There is a significant amount of data behind the scenes involved in the analysis and trade plan tab above, that does not get put into the report. Too much information for traders often confuses things – so this is stripped down to only what is needed to make the best possible decision(s) on trading the trajectory.