Nasdaq Candy Crushed Sends Hedges to Highest Since 2008: Options
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After a rally that sent technology stocks to levels approaching the Internet bubble, the air is coming out of the balloon.
Shares such as Facebook Inc., Netflix Inc., Tesla Motors Inc., Priceline.com Inc., Baidu Inc. and TripAdvisor Inc. are down more than 13 percent since the Nasdaq 100 Index’s 13-year high March 5. That’s pushed the cost of options on the gauge to the highest level since 2008 relative to the Standard & Poor’s 500 Index. The Nasdaq 100 has rallied 243 percent in five years.