Is LinkedIn setting up to make a big move? With the company's earnings release scheduled for Thursday after the bell, LinkedIn's stock options are implying something big one way or another. The implied volatility in the weekly options expiring on Friday points toward a 10 percent move in the stock.
The recent big moves in major tech stocks, particularly in Facebook, has added to the volatility in LinkedIn. But while Facebook may have popped 25 percent after its earnings last week, option activity in LinkedIn is telling a different story. There is more bearish sentiment on the Street, with a lot of call selling and put buying.
(Read more: Facebook profit shock led to big options bonanza)
There is no doubt that LinkedIn has been a successful stock, with its share price almost doubling in the past year, but the options are telling us that it may be time to play for a pullback. On the fundamental side, LinkedIn has seen revenue growth quarter over quarter. However, with an astronomical price-to-earnings ratio of about 600, an earnings miss could be a disaster for the shares.