Pre-Earnings Flow in Groupon

| November 5, 2012 | 0 Comments More

Groupon (GRPN) adds 17 cents to $4 after falling to new lows Friday. The stock is up after the company responded to an SEC inquiry on accounting and ahead of the company’s Nov 8 earnings report. On the options front, the top trade on the stock is a 47000-lot of Nov 4 puts for 45 cents per contract. It probably covers a position opened on 10/23 when 40,000 were sold at 20 cents. The stock was around $4.50 at the time. Beyond that, much of the flow in GRPN this morning is in the Weekly 11/9 and November 3.5 calls. November 3.5s are the most actives, with 6,600 traded (81 percent Ask) against 5,634 in open interest.

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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.