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LinkedIn Options Start Trading: Implied Vol 50x100

Tyler Durden's picture
Submitted by Tyler Durden on 05/27/2011 09:48 -0400



 

LNKD options have broken for trading and it is a rather wide market: some indicative markets: July $100 calls: $0.05 bid; $4.70 ask, June $77.50 puts $1.50 by $4.50.  Implied vol for ATM calls is about 50 while for puts roughly double, or 100. The most actively traded options early on: $80 June puts, and July $92.50 calls. Everyone should be grateful we have Citadel's HFT team to make markets and add option liquidity.

 
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Fri, 05/27/2011 - 09:51 | 1316278 FOC 1183
FOC 1183's picture

great to see the bid/ask tight.  is that quote '1 up'?

oh no, now i see: 200 by 389.  '200@.05'

and exactly which side are quoting that vol on again?

Fri, 05/27/2011 - 11:26 | 1316808 redpill
redpill's picture

We don't need another gyroooo

We don't need another pooommmooo

All we want is something young

IPO!

Fri, 05/27/2011 - 12:20 | 1317062 max2205
max2205's picture

Options with these spreads shouldn't be allowed to be traded.....Options trading is no fun except for those that have decent vol

Fri, 05/27/2011 - 13:01 | 1317249 The Count
The Count's picture

Hahaaa... where does it say that the markets have to be fair or fun? Are we all being sold for idots? Of course we are. At least those who actually trade the markets at this time. Its like having a sign on your back saying "Kick me".

 

Fri, 05/27/2011 - 09:52 | 1316290 SheepDog-One
SheepDog-One's picture

Wow yet another empty vessel to jam 'liquidity' into. What do they do again? I think its some online meeting place....100+ P/E easily Im sure.

Fri, 05/27/2011 - 11:15 | 1316709 cowdiddly
cowdiddly's picture

Last I checked it was 1394 X PE LOL. Who said the Dot Com bubble burst in 01.

et me see, would I like the $92 call or the $80 dollar put, man thats a tuffy.

Fri, 05/27/2011 - 09:55 | 1316315 RobotTrader
RobotTrader's picture

Still way too early to be dealing in that stock.

Anybody attempting to gun that stock one way or another at this stage of the game is a fool.

Fri, 05/27/2011 - 10:23 | 1316415 SheepDog-One
SheepDog-One's picture

What, you dont have this hot consumer name in your Widows and Orphans fund portfolio yet? Oh I forgot, you have to wait to see if it goes up, then claim it as a longtime portfolio stalwart.

Fri, 05/27/2011 - 10:27 | 1316464 lieutenantjohnchard
lieutenantjohnchard's picture

still posting? how's the drive time to work to "deal daily with guys who approach my bank, seeking bank lines in the millions to invest in property flipping schemes, distressed debt, you name it ..."?

my hunch is you are a paid troll of a retail trade organization, or some such. or a hopeless liar. or a delusional walter mitty.

must be nice to post at zh all day on somebody else's dime and system.


Fri, 05/27/2011 - 10:51 | 1316587 shortus cynicus
shortus cynicus's picture

I suppose that RoboTrader is the same person as Tyler Durden.

He is simply producing some contradictionary confusion on ZH to train our brains not to trust in all information coming from so called "trusted sources". 

Simply reading and remembering is dangerous.

Reading, analysing, understanding, deciding is the master level to achieve.

Fri, 05/27/2011 - 09:59 | 1316334 alien-IQ
alien-IQ's picture

not worth touching that crap yet. but they should eventually be a nice put play.

Fri, 05/27/2011 - 10:16 | 1316379 Crispy
Crispy's picture

Tighter now TD - you gotta give them 5 mins or so after the rotation. ;)

Vol will crush in a few weeks down to the 25-50 area.

Credit spread ops abound for the patient among us...

Fri, 05/27/2011 - 10:13 | 1316399 Chasecran
Chasecran's picture

Nah, they only trading at 2,159.25X earnings.  Plenty of upside.  I think I'll hit those call offers and then go ride my unicorn.

Fri, 05/27/2011 - 10:19 | 1316420 SheepDog-One
SheepDog-One's picture

OH dang I way undershot by calling it a 100 P/E, 2,200 P/E sounds a bit more like it.

Fri, 05/27/2011 - 10:59 | 1316630 shortus cynicus
shortus cynicus's picture

Don't look at the price, but at the real value.

To survive the coming NWO you must be LinkedIn.

Anyone LinkedOut will be picked up by FEMA for some sort of free camping activity.

 

Fri, 05/27/2011 - 11:31 | 1316698 AccreditedEYE
AccreditedEYE's picture

If you are looking for a seller, I'll take the other side of that trade. I've no problem writing naked calls on this screaming, foaming-at-the-mouth pig. Especially as the Nazz starts to see difficulty breaking 2800 w/o one of Uncle Ben's new programs.

Fri, 05/27/2011 - 10:55 | 1316591 TradingJoe
TradingJoe's picture

I think I'll take a shot with a spread/collar, either way it's about making money right folks?!?!

Fri, 05/27/2011 - 10:57 | 1316602 rayban
rayban's picture

You have to adjust the vols for the forward. Basically the stock is very expensive to borrow, and the forward curve is in backwardation.

Better avoid it for now.

Fri, 05/27/2011 - 11:07 | 1316614 firstdivision
firstdivision's picture

Wow, this is the biggest discrepancy in options pricing I have ever seen.  I take it they used the Buy-nomial model.

Fri, 05/27/2011 - 12:45 | 1317175 SILVERGEDDON
SILVERGEDDON's picture

 This is like having someone convince you that eating gas soaked flaming dog shit is good for you. Listen to yer gut - IT MUST HAVE VALUE - EVERYONE IS BUYING!!! Please. If the Robotraitor is commenting, be very afraid.

Fri, 05/27/2011 - 17:12 | 1318187 AboutAverage
AboutAverage's picture

 

I don't know what is more pathetic that I still watch these goon rigged markets in disbelief/frustration or that I read the posts of fools who actually trade with these crooks.  Well, or claim to anyway...

 

 

Fri, 05/27/2011 - 17:12 | 1318188 AboutAverage
AboutAverage's picture

 

I don't know what is more pathetic that I still watch these goon rigged markets in disbelief/frustration or that I read the posts of fools who actually trade with these crooks.  Well, or claim to anyway...

 

 

Fri, 05/27/2011 - 17:12 | 1318189 AboutAverage
AboutAverage's picture

 

I don't know what is more pathetic that I still watch these goon rigged markets in disbelief/frustration or that I read the posts of fools who actually trade with these crooks.  Well, or claim to anyway...

 

 

Fri, 05/27/2011 - 18:14 | 1318316 Carp Flounderson
Carp Flounderson's picture

shorted vol at 10am bitchez, did well.  This is just practice for facebook anyway.

Mon, 05/30/2011 - 18:17 | 1323276 riskarb
riskarb's picture

I haven't read all the comments, but this is typical in new issues. The majors are charging 70-100% (or more) to source the short shares to complete the reversal arbitrage. So the implied reversal edge is roughly equivalent to what is being charged to borrow.

No conspiracy, no edge... nothing to see here. Move along.

Mon, 05/30/2011 - 18:32 | 1323306 riskarb
riskarb's picture

Rigged mkts? How's that?

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joiceca's picture

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