Groupon shares are off 12cents this morning near 3.87 and a block of 30000 Jan14 5 calls were sold for 95cents on the AMEX at 9:50ET tied to 1.71million shares at 3.89. Looks like a trader elected to take a quick loss and close out a trade opened on 10/31 when paper bought 30K for 1.20 tied to $4.10 stock. Loss on the option leg is $750K but half of that would have been offset by the stock hedge. This likely closes out the largest open position in the web-deal name that saw a brief share price peak near $26 in February.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.