LinkedIn ($LNKD) has been one of my favorite stocks over the past few years ( https://www.optionmillionaires.com/linkedin-lnkd-finally-hit-150-on-blow-out-earnings-report/ ) , and I continue to like it here, despite the most recent earnings report that sent shares down the proverbial 'crapper' on a weak outlook.
I have been waiting for the right spot to add some calls for a move higher into earnings on July 30th, and think this most recent pullback has provided a great opportunity.
The options market is pricing in a mere 2.6% move on the shares this week, and think the out-of-the-money $220 and $225 strikes can offer a nice payday on a breakout, which I think could happen this week.
With the stock down over 7% YTD, and second quarter earnings coming, I think it's only a matter of time before folks start bidding the shares up,. A break and close above $212.50, will set the stage for a swift move into the $220s.
I currently hold $220/$225 calls, and may add to or close my position at anytime.
Happy Trading!
- JB