Linked In
- Posted by Greg Harmon
- on May 3rd, 2012
Been looking for an entry to Linked In? It may be in a megaphone top. A pullback could be your entry. Or it may continue to the upside in the rising channel. In that case what have you been waiting for? With earnings coming in 20 minutes there is still a best of both worlds trade for those that want to be long.
Buy the May 4 Weekly 115/120 Call Spread and sell the May 11 Weekly 85 Put for 80 cents.
It gives you upside to 120 tomorrow with a reward to risk ratio of 6.2:1, 80 cents to make $5.00, and an entry at 85, near the 100 day Simple Moving Average if it pulls back. Options are pricing about a $12 move, right to 120 or down to 95. If it gets there in the after market, sell short at 120 to lock in your $5.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More) -
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