Massive Block of Calls Bought on Groupon (GRPN)
Shares of Groupon (GRPN) are trading lower on the session by 7.83%, at $4.12. The stock has been trending lower over the past six months, losing half of its value.
Despite the slide, one trader is making a massive upside bet today. A short while ago the January 2014 $5.00 call was purchased 30,000 times, on the offer, for $1.20. Given the current open interest on the strike of 10,972 contracts, this is clearly new positioning.
Call volume is now running at 4.7x normal volume with 56,122 contracts traded.
30-day implied volatility is rising 1.3% today to 105.82%; 10-day realized vol is registering 28.63%. At $1.20, the Jan14 $5.00 calls traded at 87% 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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