Wednesday, April 4, 2012

Trade: Sold LNKD Apr 90/85 Credit Put Spread

LinkedIn (LNKD) has been showing some relative strength in an otherwise ugly market the past few days.  Was previously in 77.5/72.5 spreads and bought those back for a profit.  Have been eyeing the stock for another entry point.  Shooting against the horizontal support line at ~95, the 20-day sma, and the rising 50-day sma & lower Bollinger band.  Current max pain strike is at 92.  OptionsHouse says the probability of max profit is 84.3%.

Sold LNKD Apr 12 90/85 put spreads for ($0.60-$0.20) x 100 x 4 spreads = $170 premium received

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