Underperforming Groupon Stock Slides Ahead of Earnings

The stock is down more than 65% year-over-year

Deputy Editor
May 6, 2022 at 2:39 PM
facebook twitter linkedin


Groupon Inc (NASDAQ:GRPN) is getting ready to post first-quarter earnings after the close on Monday, May 9. GRPN has a mixed history of post-earnings reactions, given it finished four of the last these eight next-day session higher, and was lower for the other four, with fairly large moves in either direction. The security has averaged a next-day 16.3% swing in the last two years, though this time the options pits are pricing in a slightly larger 18.4% move. 

GRPN hasn't been faring well on the charts, down 65.2% year-over-year, while pressure at the 60-day moving average is capping the shares. Today, the security is down 8.4% to trade at $16.97.

GRPN May6

Shot sellers have been piling on Groupon stock. The 4.26 million shares sold short account for a hefty 20.4% of its available float, or over three days' worth of pent-up buying power.

I's worth pointing out that GRPN ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 22 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making it a potential premium-selling candidate

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners