Earnings Trade of the Day (LNKD) 2.9.2012

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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