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Live Nation gets vote of confidence

Live Nation Entertainment is at a support level from last summer, and investors think it will hold its ground.

optionMONSTER's tracking systems detected the sale of about 2,400 January 7.50 puts for $0.75 and about 1,900 October 7.50 puts for $0.40. Volume was more than twice open interest in both strikes.

LYV rose 1.31 percent to $8.51 on Friday, and is now back to the same level where it bottomed in August 2010. Investors often write puts in such situations, hoping that support will remain in place and the contracts sold short will dwindle to zero. Shares entered the session down 24 percent in the preceding month.

The company, which runs music venues such as House of Blues and San Francisco's Fillmore, beat expectations on the top and bottom lines the last time it reported earnings on Aug. 8. That came one month after major shareholder John Malone said it would fare better if it were taken private.

Overall options volume in LYV was 28 times greater than average on Friday.

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

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

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