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What's behind huge Groupon call sale

Chris McKhann (chris.mckhann@optionmonster.com)

A huge call trade sees limited upside in Groupon for the rest of the year.

About 57,000 GRPN options have change hands so far today, already about 5 times its daily average. Almost all of the volume is in one print.

A trader sold 49,469 January 10 calls for the bid price of $0.55, optionMONSTER systems show. This is clearly a new position, as open interest in that strike was 7,296 before the session began.

The calls weren't tied to any trades in the underlying stock identified by our systems, so this could be naked selling with an initial bearish bias. Alternatively, these options could have been traded against a substantial long position established earlier as a covered call position, which would be bullish up to the strike price but not beyond. (See our Education section)

GRPN is up fractionally at $6.98 in early afternoon trading. Shares of the discount-deal company have been climbing from a low of $2.60 set back in November but remain well below the $10 level, which was last seen last June.

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