Not Feeling So Social: LinkedIn, Groupon Fail to Rally

We got a 3% rally in the Dow. We have speculative names like Wynn , Salesforce.com , and Priceline.com surging.

And yet one group seemingly tailor-made for risk on rallies is suspiciously absent from today's action: social internet stocks.

Shares of LinkedIn and Groupon are both sharply lower, but it's LinkedIn shares that are attracting the interest of options traders.

With a hour to go in trading, LinkedIn puts are 60% more active than calls, with just over 13,000 puts trading hands.

There appears little catalyst for the sell-off, but some investors point to a Forbes articlesuggesting a $43 price target as a possible culprit.

Valuation has always been a concern for the social media player. LinkedIn shares trade at 11 times 2012 revenue, considerably higher than online rival Monster Worldwide , whose shares trade at 1 times next year's sales.

Other market participants suggested a simpler reason for the sloppy price action: a hangover from the recent lockup expiration.

Said Susquehanna's Herman Leung (Neutral): "Stocks tend not to do too well after huge offerings."

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    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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