Buy Alert: May 3, 2013

| May 3, 2013

Buy Alert:  May 3, 2013


Trade Details

Buy LinkedIn (LNKD) June 2013 $150 Puts for $1.30 or better



I actually like LinkedIn and overall I think it’s a good stock for the long-term.  However, the company’s earnings this week leave a lot to be desired.  And, I think the company is due for some short-term pain.

The professional networking website reported revenues well below analysts’ expectations.  Moreover, full-year revenue and earnings outlook were also lower than expected.  The company is in the process of hiring more employees and investing in data centers.  In the long-run, that’s a good thing – but for now, it’s putting pressure on earnings.

LNKD also has a rich valuation and is trading over its key moving averages.  As such, we’re going to buy June OTM puts on LNKD in expectation of a near-term pullback.  Buy the June $150 puts for $1.30 or lower.


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Category: OTW Buy Alerts