Cash in On LinkedIn (LNKD) Bullish Move
LinkedIn Corporation Credit Spread (NYSE: LNKD)
TheOptionPlayer.com sets up a LinkedIn (LNKD) short-term (8-day) option strategy. Investors could simultaneously:
Sell the February week-one expiration LNKD $190 put for $2.12 (mid-morning bid)
Buy the $185 put at $1.45 (mid-morning bid)
The difference between funds received and paid out is a $.67 per share credit which we keep if LinkedIn stock closes above $190 on Friday February 6th, but immediately exit the position if it appears the price will end up lower. If the price gaps lower open the trade using lower strike prices. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
We are playing LinkedIn (NYSE: LNKD) stock to continue trading above its long term support after bottoming out following earnings announce a few weeks ago. Take a gander at the LinkedIn chart, we can easily identify the support level established at the beginning of the month. LinkedIn shares crashed this week along with the overall stock market. Note that the support level held as the price is moving up and the technical momentum indicators are turning positive. LinkedIn shares have not been below the target price since the middle of last summer and there is a high probability that the stock will continue to trade above $190 for another week.
52-Week High: $257.56
52-Week Low: $112.08
Average Volume (3 month): 2,033,500
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