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)

AND

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

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

TheOptionPlayer TheOptionPlayer

Posted-In: Markets Tech Trading Ideas

  Most Popular Reports: Microsoft Will Pick Satya Nadella and Bill Gates Will Step Down Analysts React to Las Vegas Sands Earnings #PreMarket Primer: Friday, January 31: Emerging Market Turmoil Spills Over Into Europe As Goes January, So Goes the Year? A Quantitative Look Market Wrap For January 30: Markets Focus on Good News CEO Jeff Bezos: 'It's A Good Time To Be An Amazon Customer' Related Articles () Market Wrap For January 31: Markets End January On Sour Note State Dept. Assessment Of Keystone Project Expected To Anger Pipeline's Opponents Cash in On LinkedIn (LNKD) Bullish Move Benzinga Weekly Preview: Twitter To Release Earnings For The First Time Since Going Public Our Outlook For Stocks in 2014 Intraday Elliott Wave Analysis: S&P500 And German DAX Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf What Should You Know About AMZN? View the discussion thread. Partner Network