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Here’s the chart:
Since the earnings breakout in August, LNKD has been in a wide trading range between 255 and 207. It had some nastiness in October that presented support, and a retest, breakdown, and 2b reversal of that support in November.
Since then it has seen a high volume breakout from key levels around 227 and is forming a falling wedge pattern on a 30 min chart.
This is a very similar structure we’ve seen on many social media stocks— a big rip in August, a failed breakdown in november, and an attempt to retest or break to new highs towards the end of the year. I’m expecting LNKD to do the same.
You can look at Jan 230 calls as a possibility, but I think we can get better risk reward with an out of the money call butterfly.
Buy LNKD Jan 240/260/280 call butterfly for 2.70 or lower
This trade makes money as long as we get and hold above 240. All time highs are at 260 so that’s our target.
Assume full risk or run a stop under 210. Scale 1/2 position if/when the value doubles.
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