A Line in the Sand for Groupon? (GRPN)
Shares of Groupon (GRPN) are trading higher on the session by 0.45%, at $4.50. The stock has lost 84% of its value since the IPO back in November 2011.
With shares trading $0.50 above its 52-week low, one trader is selling puts on GRPN today. A short while ago the December $3.50 put was sold 20,000 times, on the bid, for $0.20. Open interest on the strike is only 158 contracts.
This trader is betting that shares will remain above $3.30 over the next few months. If GRPN does just that, he or she will take down the full credit on the transaction of $400,000.
30-day implied volatility is up 0.5% today to 95.53%, while 10-day historical vol is registering 41.81%. At $0.20, the Dec $3.50 put traded at 88% vol.
Groupon, Inc. is a local e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount.
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