GRPN

Many of my option mentoring students were wondering about the move priced into GRPN options today.  The stock 7.5 dollar stock, into its earnings had an incredibly high volatility, almost all of it priced into August options that expire tomorrow.  We can clearly see the vol pump in GRPN Aug in this cut out from Option Vision (a new analytic tool we will be using here at Option Pit with some regularity).

Europe is putting big pressure on the US equity market.  In fact, the close to close activity looks  much more benign, I think, than the intraday selling.  After watching the most overvalued security in the world, the TLT, trade to a new high for the year (and it could go higher as the Greek electorate figures out what happens after they get to replace their shiny Euros with TP), I looked at revisiting GRPN just post-earnings.  A few things were bothersome about the activity today. 

First the stock opened strong on better than expected earnings (more revenue and smaller losses), close to $14.97 and then proceeds to sell off with hasty abandon after the shorts covered.  That is not a good sign for a stock.