Houghton and Atkeson

Time for a Bounce? Liberty Media Interactive (LINTA)

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Liberty Media Interactive (LINTA) engages in video and online commerce and is one of the tracking stocks of the media conglomerate Liberty Media that is run by John Malone.

LINTA was caught in the selling storm that ravaged the markets last week. Its value was nearly cut in half. Daily margin calls added greatly to the downward spiral in the market and LINTA's share may have suffered this pressure, too.

Along with Cheaspeake Energy's (CHK) Aubrey McClendon and Viacom's (VIA) Sumner Redstone, Liberty's John Malone was one of the high profile names of the guys mentioned on the trading decks who were being mauled by margin calls.

Today, options volume is running 14-times the usual in LINTA. With the stock at $7.60, market participants have traded more than 5,000 LINTA Jan 12.50 Calls (NLHAV) for 25 cents.

With zero bid for these calls and only 51 contracts open, it would appear that these are opening buyers. A year and half ago, LINTA was trading at $25 and, again, was at $14 last week.

Is it time to play a bounce?

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