Breakdown: I bought the LNKD November 90-70 Put Spread for $6.50.
Profitable – I make money on this trade if LNKD closes under $83.50 by November 18, 2011.
Break-even – I breakeven on this trade if LNKD closes at $83.50 by November 18, 2011.
Unprofitable – If LNKD closes above $83.50 by November 18, 2011 then I can lose the maximum amount I paid for the spread, $6.50.
The reason I like this trade: LNKD has rallied hard over the last three days, but has seen selling pressure at the $90 level 4 times total now. I like buying this spread, because it has a 2-1 risk vs reward and I have plenty of time to let this trade work out. Also, LNKD has earning on November 14, 2011 and the stock sold off last earnings period, so I want to put on a bearish position.