Liberty Interactive is teetering near multi-year highs, and
investors are hitting the sell button.
optionMONSTER's Depth Charge tracking program detected the purchase
of 3,000 May 15 puts for $0.10 and the sale of an equal number of
May 18 calls for $0.85. Volume was above open interest in both
The transaction was probably the work of an investor who owns
shares in the media company, which is the parent of the QVC retail
channel. He or she collected a credit of $0.75, ensuring a minimum
sale price of $15.75 and a maximum of $18.75.
Known as a
, the trade is a common hedging strategy. (See our
LINTA rose 1.62 percent to $18.81 yesterday. It's up 21 percent in
the last six months but recently stalled around the same level
where it found support in November 2007. That could be leading some
chart watchers to believe that resistance is in place.
Overall option volume in the company was 6 times greater than
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