Internet IPO Puts Rise at Record Rate Before Facebook: Options
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As Facebook Inc. prepares its initial public offering, traders are boosting the cost of bearish options at a record rate for LinkedIn Corp. and four other Internet companies that sold shares in the past year.
Puts trading 10 percent below shares of LinkedIn, Groupon Inc., Zynga Inc., Pandora Media Inc. and Yelp Inc. cost an average of 5.12 points more than calls 10 percent above on May 14, data on 30-day options compiled by Bloomberg show. That’s almost four times more than at the record low reached in April.