Trade Update: Get Your Groupon Shorton. (GRPN)

by CC May 3, 2012 1:59 pm • Commentary

From the way back machine, we did a crazy 1×2 in GRPN in December. Paid .70, it’s currently about 1.75. With the stock looking like it’s about to break 10 we’re going to stay put and see how it plays out. If the stock looks like it will hold this level we’ll have some room to take this trade off for a nice little profit. If it breaks down we’ll try to milk it for even more. Original trade below:


Original Trade: December 16, 2011

GRPN ($22.43) Bought July 10 /5 1×2 Put Spread for .70

Bought 1 July 10 Put for 1.44

Sold 2 July 5 Puts at .37 each

Break-Even on July Expiration:

Profits btwn 9.30 and .70 make up to 4.30 with max gain at 5.00 of 4.30

Losses of up to .70 btwn 10 and 9.30 and then again btwn Zero and .70, with max loss of .70 above 10.00