Bulls React as Icahn Rumors Lift LinkedIn Corporation (LNKD)

LinkedIn Corp's (NYSE:LNKD) calls are accelerated on speculation that Carl Icahn is interested in investing in the company

Jun 1, 2015 at 3:29 PM
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Rumors that activist investor Carl Icahn may be interested in taking a stake in LinkedIn Corp (NYSE:LNKD) have pushed the shares 3.1% higher today to $201.02. The stock is now on pace to close above its 20-day moving average for the first time since its bear gap from early last month. Elsewhere, call players have stepped up, with the contracts crossing at an accelerated intraday rate. 

LNKD's weekly 6/5 series is in high demand, making up eight of its 10 most popular strikes. One option that's noteworthy is the weekly 6/5 210-strike call, which it appears traders are buying to open. That means they're betting on the shares to gain at least 4.5% and topple $210 by week's end, when the options expire. 

This is just more of the same from LNKD's option traders. Over the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has accumulated a call/put volume ratio of 1.88, which is only 9 percentage points from an annual high. 

Analysts, too, have made their bullish expectations clear. Of the 26 brokerage firms with coverage on the stock, 19 say it's a "buy" or better. Also, LinkedIn Corp's (NYSE:LNKD) consensus 12-month price target of $254.03 stands at a 26.4% premium to current levels. 


 

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