LinkedIn Checking Out

Shares of LinkedIn

are diving lower this afternoon. Currently, shares are off by 6.53%, trading at $58.96. The stock opened in positive territory this morning, touching an intra-day high of $64.95, before cascading lower. Shares of LinkedIn have been on a serious slide over the past five weeks, trading off by nearly 40% during that period. Most importantly is that shares are now trading at a fresh 52-week, all-time, and post-IPO low. If shares cannot find a bid fast, it could be lights out as shares race lower to establish new ranges. Despite that sizable move down, LinkedIn is not in much danger of a major short-covering rally given the low (3.79%) short interest. This is not to say that shares can't mean revert higher (they likely will), but a rip-your-face-off move is likely out of the cards. If shares continue to trade below the post-IPO low, I would not hesitate to outlay short shares on any rally. For those not willing to wait for a rally, you can consider buying the Dec2011 $57.50 put for $3.35 and selling the Dec2011 $67.50/50.00 strangle against the position for a net credit of $2.00. The total net debit on the position would be $1.35 or 2.3% of shares. LinkedIn Corporation is a professional network on the Internet with more than 90 million members in over 200 countries and territories.