by Houghton and Atkeson 07/18/08
InterActiveCorp (IACI) has lost one-third of its value year-to-date. In fact, Google (GOOG), Yahoo (YHOO), ValueClick (VCLK) and the portion of Microsoft (MSFT) that is Internet focused all appear to be weakening.
Have we reached the point when the pace of consolidation in the Internet sector accelerates?
Option investors bought 4,000 IACI Aug 20 Calls (QTHHD) up to 55 cents this morning. These investors appear to be anticipating increased upward volatility in IACI beyond current market expectations.
As of this morning, total call open interest in IACI was north of 70,000 contracts while put open interest stood at about 30,000 contracts.
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