Trade idea on GRPN

Discussion in 'Options' started by hajimow, Aug 1, 2012.

  1. Put a combo order to sell the GRPN shares and weekly PUT 7 at 7.10
    GRPN will close below 7 and you will be assigned the shares and you will make 10 cents minust about 1.5 cents commission which is 8.5 cents per shares in less than 3 days. Probabilty is about 94%
    Bid/ask for the combo is now 7.07/7.13

    Note: At this moment The prices are
    GRPN bid/ask = 6.42/6.43
    Option : 0.6/0.7
  2. You could do "that" or just wait for when GRPN has a deal on its own shares of.......Buy 1 share of GRPN, get another free! A limit of 10,000 free shares per customer. :cool:
  3. That was funny but true. Only one contract of GRPN 7 PUT is traded so far. That shows that no one has followed my advice but it also proves some other things.
    My trade idea is almost considered a super safe trade (relatively speaking- there is not such a safe trade) but no one did it.
    1- traders are not happy with 3% in three days. They want to double their money in 3 days and that is why they lose their shirt. I am sure that AAPL made many people homeless with running to almost 618 in pre market and then falling to 605 when the market is up. maybe catching the sharp falling knife of FB is more pleasant than getting into the safe GRPN trade that I recommended.
    Note: I do more dangerous trades in GRPN and I stripped its risk when I recommneded that trade.
  4. actually the profit rate is 4.7%. in my PM account, I need $179 for each pair.

    Profit = 8.5/179= 4.7%
  5. I am extremely bearish on GRPN. I strongly believe GRPN will be below $1 by October. How ridiculous their business model is. many hedge funds are aggressivel shorting it.
  6. GRPN is the "whack a mole" stock of the day (Thursday 8/2/12)
    Now it is trading at $6.55 (up 0.93%) when the market is down about %0.25
  7. i do believe this is a terrible business..