Analysts Wary of LinkedIn’s Stock Surge

Re:Analysts Wary of LinkedIn’s Stock Surge by DarkShikari on Monday May 23, 2011 @12:32AM (#2574969)

If you're long LinkedIn at $100, the most you can lose is $100. But if you short at $100, your loss can be infinite.

This is what put options are for.

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Re:Analysts Wary of LinkedIn’s Stock Surge by stevenj on Monday May 23, 2011 @12:48AM (#2574999)

That's true.

But IMO, to make it worthwhile, you still have to get the timing right. That's the hard part.

Identifying a bubble is relatively easy. What you don't know is how big it'll get and when it'll pop.

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Re:Analysts Wary of LinkedIn’s Stock Surge by Gaussian on Monday May 23, 2011 @12:55AM (#2575015)

Definitely a ripe spot for put options... but there are no public put/call options available for LNKD yet, as far as I know. It's impossible to price an option without having some history of the underlying security's volatility--and we have zero history for LNKD.

The spread would have to be gigantic to lure market makers into such a trade--and, rightly so, investors aren't interested in gigantic spreads.

If you want to get bearish on this you'll have to strap on your helmet and just short it.

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