LNKD was quite the roller coaster! The stock popped sharply after the earnings report released, reaching as high as 117.16. When the market opened this morning, the stock swiftly dropped and is settling in at 108.50 at the moment.
This is optimal for our LNKD 90/125 Short Strangle. The Nov1 options expire today, and LNKD is trading in the middle of the max profit range.
We intend to let both the Short 90 Put and Short 125 call expire worthless. This translates to max gain, which in the case of our 0.85 credit fill is $85 per spread.
Furthermore, we had noted a defined risk spread that we would have considered if we weren’t comfortable trading the Short Strangle. The play was the LNKD Nov1 90/95/115/120 Iron Condor @ 1.80 credit. Had we opted for this trade, we would also let it expire worthless for max gain of $180 per spread.
Excellent way to end the week! Let’s keep the winners coming next week!