Reason I like this Trade: I looked at the amount of movement that LNKD has moved and the stock has not moved over 5.5% once over the last 4 quarters. I think that the stock should sell-off as GRPN trades lower and a sell-off in MWW for earnings. If the stock breaks the 100 Day Moving Average at $80 then I want to be out of this trade, so I bought the 85 Calls and MY stop and I will leave this trade on all day tomorrow.
Date PreEarn PostEarn Change
11/04/11 $87.50 $82.37 $-5.13 (-5.9%)
08/05/11 $95.52 $91.36 $-4.16 (-4.4%)
Average Magnitude of Post Earnings Return 5.1%
UPDATE: 2.10.2012 With LNKD ripping more than expected, I am short LNKD at $80, but I stopped out at $85. I will leave this trade on and hope the stock sells off to $83, so my losses are not as much. This trade has not been a winner, but I still have time left to hope this works out. On to the next trade
UPDATE 2.11.2012 This spread expired worth the maximum it could be worth, $5. I was stopped out at $5, I risked $3.50 to make $1.50 and I thought it was a great risk vs reward, so yes sometimes I do lose money so on to the next trade.
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