NEW BULLISH Plays
Limelight Networks - LLNW - close: 6.29 change: +0.04
Stop Loss: 5.95
Target(s): 6.90, 7.25
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below
Limelight Networks, Inc. provides solutions that enable business and technology decision makers to profit from the shift of content and advertising to the online world, the explosive growth of mobile and connected devices, and the migration of IT applications and services into the cloud. Over 1600 customers worldwide use Limelight's massively scalable software services that engage audiences, enhance brand presence, analyze viewer preferences, optimize advertising, manage and monetize digital assets, and ultimately help build stronger customer relationships.
(source: company press release or website)
Why We Like It:
After December's nearly month-long correction in LLNW the stock is finally rebounding. The initial push off the 100-dma boosted LLNW from $5.80 toward $6.50. Now traders are buying the dip again with the recent test of the $6.00 area. LLNW can be a volatile stock and I consider this an aggressive, higher-risk trade. The stock does look poised to rally higher after its 61.8% Fibonacci retracement of its August-November run up. There is potential resistance at the 50-dma. I would keep your position size pretty small to limit your risk. While the options do offer a bit more reward here they also offer a lot more risk! You might be happier just trading the stock. I'm suggesting we start the play with a stop loss at $5.95. Our targets are $6.90 and $7.25.
Open Small Positions Now.
Suggested Position: LLNW stock @ current levels.
- or -
Buy the 2011 February $5.00 call (LLNW1119B5) current ask $1.50
Entry on January 12 at $xx.xx
Earnings Date 02/22/11 (unconfirmed)
Average Daily Volume: 1.3 million
Listed on January 11th, 2010