Groupon (GRPN) is up 53 cents to $7.97 and seeing relative strength today ahead of earnings. The company reports after the bell. After gaining 11.9 percent Friday, the stock is up nearly 7.5 percent Monday morning. Early order flow includes 4,200 puts and 2,810 calls. Aug 6 puts are the most actives. 3,190 traded (91 percentAsk). 1,225 Aug 8 calls changed hands (70 percent Ask). Today will mark Groupon’s third quarterly earnings release as a publicly traded company. Shares added 3.7 percent on 5/15 when results were last reported, but 13.9 percent on 2/9. Opttions market seems to be pricing in the possibility of a big move. August 8 straddle is trading at 25.4 percent of spot and a one sigma move based on skew is a relatively wide $5.68 to $11.18 per share.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.