Groupon gets huge vote of confidence

Shares of Groupon are hovering near eight-month highs, and one large trader apparently sees the online-discount service holding recent gains.

More than 21,200 GRPN options have traded, more than twice their daily average for the last month. Most of that volume came in a single print.

optionMONSTER systems show that a trader sold 15,000 July 6 puts for the bid price of $0.61. The volume was far above the strike's open interest of 1,303 contracts before the session began, clearly indicating that this is a new position.

The put selling is a bet that GRPN will hold up above $6 in coming months. The trader will also face the obligation to buy shares if they are below that strike price. (See our Education section)

GRPN is down 1.78 percent to $6.36. The stock has been fighting resistance at $6.50 for the last couple of weeks, its highest level since gapping down in August. Shares were down below $6 three weeks ago.

The company is scheduled to announce first-quarter results on May 8.


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