Turning time into money with IAC/Interactive

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One investor wants to turn time into money in IAC/Interactive.

The e-commerce holding company, whose businesses include Ask.com and Match.com, has been in a steady uptrend since the market bottomed in March 2009. It surged to an all-time high over $43 in late July after earnings and revenue crushed expectations.

IACI then fell along with the rest of the market, and is now trying to hold support around the $34-37 area. Yesterday it rose 1.17 percent to $37.16.

The option activity was mostly focused on the April 25 puts, with more than 10,000 contracts sold for $0.65 against no existing open interest. The stock would have to fall precipitously, and break several key support levels, for those puts to go in the money.

The investor probably thinks it's a safe bet that won't happen, and hopes that the value of the puts will dwindle to zero as time passes. He or she probably also expects implied volatility to decline, which would favor the trade as well. See our Education Section for more.

Overall options volume in IACI was 46 times greater than average yesterday.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: IACI

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