Round-Number GrubHub, Inc. (GRUB) Traders Bank On a Bounce

GrubHub Inc (GRUB) is being pressured by Yelp Inc (YELP) news

Digital Content Group
Feb 10, 2015 at 2:55 PM
facebook X logo linkedin

GrubHub Inc (NYSE:GRUB) is feeling the heat on the heels of Yelp Inc's (NYSE:YELP) big announcement, down 1.8% this afternoon to trade at $38.36. However, a look at the data shows a number of option bulls are keeping the faith.

One of GRUB's most active strikes is the March 40 call. Traders appear to be initiating fresh long positions here, expecting the stock to reclaim its perch atop the round-number 40 strike by the close on Friday, March 20 -- when back-month options expire. The shares settled above this level as recently as last Friday, thanks to a well-received fourth-quarter earnings report.

Today's call-buying bias is simply business as usual in GRUB's options pits. The stock's 10-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 6.28 -- with long calls outstripping puts by a more than 6-to-1 margin.

However, there may be an ulterior motive for these upside bets. Specifically, short interest on GrubHub Inc (NYSE:GRUB) spiked nearly 21% during the latest reporting period, and now makes up 7.7% of its float -- which would take about a week to buy back, at typical daily trading levels. In other words, some of the recent call buyers -- especially at out-of-the-money strikes -- may be short sellers hedging.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI