Players Grab Groupon (GRPN) Calls Ahead of Earnings

| February 19, 2013 | 0 Comments More

Groupon (GRPN) adds 12 cents to $6.08 in relatively active trading of 9.4 million shares. 29,000 calls and 3,100 puts traded on the stock. A three-way spread traded in which the investor apparently sold 3,000 March 5.5 calls on GRPN at 89 cents and 3,000 Apr 5 calls at $1.33, to buy 6,000 Apr 7 calls for 39 cents each. The activity might roll a position from in-the-money contracts to out-of-the-money 7 calls. Apr 7 calls are the second most active in GRPN today. 6,145 traded. March 7 calls are seeing the most activity. 7,000 contracts changed hands. The interest comes ahead of the company’s earnings, due out the afternoon of Feb 27. Groupon shares lost 7.7 percent to $2.77 when earnings were last reported on 11/9. Many had written the stock off for dead, but it has more than doubled since that time.

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Category: All Stocks, Mid Cap Stocks, Software & Computer Services

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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.

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