Option Trade 
LinkedIn Corp (NYSE:LNKD) Calls
Wednesday, 03 February, 2016

**OPTION TRADE: Buy the LNKD Apr 2016 240.000 call (LNKD160415C00240000) at approximately $4.40. Place a pre-determined sell at $9.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.75.

by Ian Harvey

February 03, 2016

LinkedIn Corp (NYSE: LNKD), a professional online network, will post 4Q15 earnings on Thursday, February 4th after market close. Analysts expect the company to post quarterly earnings per share of $0.78 on revenue of $857 million, compared to the same quarter of last year in which the company posted EPS of $0.61 on revenue of $643 million.

LinkedIn has been compared to Facebook in the past as both platforms have successfully grown their user base, but LinkedIn is different in that it has a paid platform.

Shares of LinkedIn Corp will open at 203.43 on Wednesday. LinkedIn Corp has a 12-month low of $165.57 and a 12-month high of $276.18. The firm’s market capitalization is $26.67 billion. The stock’s 50 day moving average price is $213.12 and its 200-day moving average price is $211.45.

LinkedIn Corp last posted its quarterly earnings results on Thursday, October 29th. The social networking company reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.32. During the same quarter in the previous year, the company earned $0.52 EPS.

The company earned $779.60 million during the quarter, compared to analysts’ expectations of $754.80 million. The business’s quarterly revenue was up 37.2% on a year-over-year basis. On average, equities research analysts forecast that LinkedIn Corp will post $2.69 earnings per share for the current fiscal year.

Hedge funds and institutional investors have bought shares of the company. Saturna Capital increased its position in LinkedIn Corp by 30.2% in the third quarter. Saturna Capital now owns 112 shares of the social networking company’s stock worth $21,000 after buying an additional 26 shares in the last quarter. Gerstein Fisher increased its position in LinkedIn Corp by 2.3% in the third quarter. Gerstein Fisher now owns 1,135 shares of the social networking company’s stock worth $216,000 after buying an additional 26 shares in the last quarter. First American Bank acquired a new position in LinkedIn Corp during the fourth quarter worth about $279,000. Reynolds Capital Management acquired a new position in LinkedIn Corp during the fourth quarter worth about $293,000. Finally, Raymond James Trust acquired a new position in LinkedIn Corp during the fourth quarter worth about $342,000.

LinkedIn Corp has received a consensus recommendation of “Buy” from the forty-three analysts that are currently covering the company. Six research analysts have rated the stock with a hold rating, twenty-nine have issued a buy rating and three have given a strong buy rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $276.10.

Harvey’s Options Volatility Indicator

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

**OPTION TRADE: Buy the LNKD Apr 2016 240.000 call (LNKD160415C00240000) at approximately $4.40. Place a pre-determined sell at $9.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.75.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



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