Stock / Symbol: LinkedIn / LNKD
Option Strategy: double calendar
Price at trade post: $241
Reasoning: putting on a delta neutral trade to play LinkedIn's earnings announcement scheduled for next Tuesday afternoon. I'm setting the option strikes based on the street's expected move of +/- 30. The Greeks on this double calendar are: Delta of 1.7, a positive Theta of 88 and a positive Vega of 43. Please note that I'm using next week's expiring options for the short legs. With a positive Vega of 43 on this trade, we may just be able to close out ahead of the earnings call for nice, quick gain.
Trade Details:[private_monthly]
BTO 1 LNKD Dec13 270 call
STO -1 LNKD NovWk1 270 call
BTO 1 LNKD Dec13 210 put
STO -1 LNKD NovWk1 210 put
for a max net debit of $9.15 per contract (day order, limit order). Try for the mid + 0.05. The mid is currently at $8.95. If not filled today, it's ok to try again on Monday.
Requirements:
Cost/Proceeds $915
Option Requirement $0
Total Requirements $915
Estimated Commission $6
[/private_monthly]
Max Risk: $915
Max Reward: $800 or 87% (at current volatility level) at either 210 or 270 by Nov 1
Profit range: between 200 and 295 by Nov 1
Suggested Upside stop: [private_monthly]@ $285
Suggested Downside stop: @ $209
[/private_monthly]
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