Linkedin recently reported their 3rd quarter earnings, or rather losses. The good news however was that their revenue growth surprised analysts on the upside, more than doubling from last year’s numbers. LNKD was trading around $80 this morning, and the November 19th $70 puts were at 1.0 bid / 1.2 asked. The implied volatility on those puts was around 83, which seemed pretty high for a company that just reported its earnings, and the down-side risk, at least for company related news, seems low.
For an option with 12 days to run, this seemed like a reasonable bet to me. I sold S70 puts at $1.1. I offered at the mid price and the order filled immediately.