LinkedIn Follow Up

• Posted by Greg Harmon
• on October 30th, 2015

The following trade ideas were given yesterday afternoon for LinkedIn ($LNKD) for earnings. I have added suggested exit strategies and now what they look like at end of day Friday. A near perfect set of trades:

Trade Idea 1: Buy the October 30 Expiry 230/240 Call Spread for $2.75.
Looking for large open interest and activity today to pull the stock higher.

9:40 Exit Plan: Sell to close the Call Spread, $8 as I write.

End of Day Valuation and Return: $10 or 264% gain

Trade Idea 2: Buy the October 30 Expiry 230/240/250 Call Butterfly for $1.50.
Looking for large open interest and activity today to pull the stock higher but lowering cost looking for 240 to stall any move.

9:40 Exit Plan: Sell to close Butterfly over $5, or just sell to close 230/240 Call Spread as above.

End of Day Valuation and Return: $9.13 or 508% gain

Trade Idea 3: Buy the October 30 Expiry 230/235 Call Spread and sell the October 30 Expiry 180 Put for $1.00.
Leveraging the Call Spread with a short put outside of the options expected range and below the October low.

9:40 Exit Plan: Sell to close Call Spread near $5 or watch for a full $5 if stock closes over 235. Buy to close Put if uncomfortable with margin but will expire worthless.

End of Day Valuation and Return: $5 or 400% gain

Trade Idea 4: Buy the October 30 Expiry/November 240 Call Calendar ($2.00) and sell the October 30 Expiry/November 200 Put Calendar ($1.80) for $0.20.
Looking for a longer term move beyond 240, but not above it Friday, with protection for a downside move below 200 tomorrow.

9:40 Exit Plan: Buy to close the October Calls, $1.80 as I write, leaving long November 240 calls to watch for more upside. Buy to close short November 200 Puts for 40 cents. can close entire position for about $4.50 today as well.

End of Day Valuation and Return: $5.61 or 2705% gain. Could continue this as a November 240 Call.

Trades like these are given to premium subscribers daily along with a weekly macro review and 10 swing trade ideas with triggers, stops and targets each week. Join here.

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Contact me at greg@dragonflycap.com before Sunday kickoff and use the code GO CAVS in the message can get either an annual subscription for $556 (10% off) an annual subscription plus my book signed for $600.

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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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