The fundamentals of this company are completely ridiculous. It's good to see revenue increasing, but earnings are not. I'm not a user of the service, so I'm not being swayed by a negative or positive experience with the service directly. I'm purely looking at playing this stock and right now buying puts in anticipation of a drop in the near future.
I really need a long to help bring me along on why I'm in error and this stock price can maintain this level or rise. I'm a little slow sometimes but I just don't see it.
Whatever you do - do not buy calls or puts. It's a fixed game with LNKD. With the small float they can easily move the price anyway they want, at the right time, to take you out of the money.
Buying LNKD calls or puts is like giving your money as charity to the market movers.
LNKD stock price has not even a shred of credible financial truth. Insiders sell as soon as they can. The price moves independently of the DOW and does big swings with low volume. 99% of the time there are no shares to short. LNKD mgmt keeps pumping revenue above profit. These signs all point to a consortium of folks working together to fleece anyone playing calls and puts.
It's a fixed game where margin players always lose and based on the high P.E. it's too tempting for new players to not try their luck.
If you do play this game. Place short orders, where you pay full price and they do not expire.
When it gets below 100, keep the short orders and buy LNKD shares and sell them each time they pop by 4 or 5 dollars, or take a gamble they will try to push it to 120 again and sell there.
When the shares drop by 25% - cover your short sale as the MMs will be pushing it up again to fleece more newcomers.
thanks for the input, but I feel that the only thing holding this up is the prospect of higher earnings through exponential growth. Not saying you aren't 100% accurate, but I trade on my gut and right now my gut is saying buy some puts because the growth rate, the revenue, and the earnings could all come in lower than expected indicating a peak and that would send this into a complete death spiral.
I feel confident in my short positino right now, I'm trying to get some input from a long on why I'm wrong.
And I have a hard time believing calls or puts are not the way to play this, the stock price has grown exponentially to a P/E of 800+. That makes this extremely volatile in my mind even if the volatility ratio isn't high at the moment.