Groupon IPO: Stock Options Just Around the Corner!
I don’t know of any IPO that had as much coverage this year as the daily deal leader Groupon. Many investors see opportunity in the Groupon IPO, noting that it’s a market leading company.
Others, however, see the nonprofitable firm as just another tech boom sure to go bust. What I do know is that no matter your opinion on the company, it’s likely that you lean one way or another, but not right down the middle.
When do Groupon (GRPN) options start trading?
Are you ready to make a big bet on Groupon’s future? If so, you probably sense the danger in buying the stock directly—tech stocks are often very volatile after their IPO.
So, when you’re ready to play Groupon’s stock (even if you want to short Groupon, as many people do) you should look to trade Groupon stock options. According to major exchanges, Groupon stock options will be available to trade on November 14th, meaning investors won’t have to wait all that long to start placing big, leveraged bets for or against the daily deal company.
Put and call options for Groupon stock
Most likely the options made available for Groupon will have a range of $2.50 on the stock price, meaning that you’ll be able to buy puts or calls in $2.50 intervals. Thus, the most active options will likely be the $25, $27.50, $30, and $32.50 strike prices. Many people are already salivating at the opportunity to short Groupon with put options.
Do realize that puts and calls will have their own disadvantages. Groupon is a well-watched firm, and many people know its story. There is also lots of interest in getting a less risky entry in the company’s future, so options are on almost everyone’s radar.
Which way do you think Groupon will go? Can Groupon stay competitive, or is it just another tech company waiting to crash?
Are you buying options? Calls or puts?
Groupon’s financials have been found to be inflated. There is no sound basis from which the company can grow.