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The shares of Groupon Inc (NASDAQ:GRPN) are up 3.8% at $11.18, after earlier notching a new annual high of $11.43. The mass-discount concern's purchase of Spain-based travel site Blink has not only lifted the equity, but has attracted a fresh crop of option bulls to GRPN.
So far today, GRPN has seen roughly 21,000 calls cross the tape -- a 14% mark-up to its average intraday call volume. On the flip side, fewer than 5,400 GRPN puts have changed hands, compared to the typical 8,374 puts.
Most popular has been the September 12 call, which has seen close to 2,900 contracts traded at a volume-weighted average price (VWAP) of $0.19. Most of the calls crossed on the ask side, and implied volatility was last seen 2.1 percentage points higher, hinting at newly bought bullish bets.
By purchasing the calls to open, the buyers expect GRPN to surmount $12.19 (strike price plus VWAP) by options expiration on Friday, Sept. 20. This level stands 9% north of GRPN's current price, and would represent territory not charted since mid-2012. Should GRPN fail to surmount the strike within the options' lifetime, the most the buyers can lose is the initial premium paid for the calls.
Reflecting escalating demand for Groupon Inc (NASDAQ:GRPN) options, the stock's 30-day, at-the-money implied volatility is up 2.9 percentage points, or 5.7%, at 55%. However, the equity's Schaeffer's Volatility Index (SVI) of 50% stands higher than just 4% of all other readings of the past year, suggesting GRPN's options are attractively priced right now, relatively speaking.
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