OptionsHouse

Options Trading News

April 26, 2013  Fri 12:03 PM CT

GRPN: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Groupon are hovering near eight-month highs, and one large trader apparently sees the online-discount service holding recent gains.

More than 21,200 GRPN options have traded, more than twice their daily average for the last month. Most of that volume came in a single print.

optionMONSTER systems show that a trader sold 15,000 July 6 puts for the bid price of $0.61. The volume was far above the strike's open interest of 1,303 contracts before the session began, clearly indicating that this is a new position.

The put selling is a bet that GRPN will hold up above $6 in coming months. The trader will also face the obligation to buy shares if they are below that strike price. (See our Education section)

GRPN is down 1.78 percent to $6.36. The stock has been fighting resistance at $6.50 for the last couple of weeks, its highest level since gapping down in August. Shares were down below $6 three weeks ago.

The company is scheduled to announce first-quarter results on May 8.
Share this article with your friends


Related Stories

GRPN

Groupon attracts bullish earnings bets

January 27, 2016

Traders are apparently anticipating strong quarterly results next month from the online-discount company, which has dropped nearly 30 percent in the last three months.

GRPN

Put sellers see end to slide in Groupon

January 22, 2016

The online-discount company is down 35 percent in the last three months, but traders are betting that the stock will hold its ground through quarterly results next month.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »