tsla

GrubHub Options Volume Pops After Post Report

GRUB shorts are likely cheering today's drop

Jul 11, 2019 at 11:43 AM
facebook X logo linkedin


GrubHub Inc (NYSE:GRUB) stock is among the biggest losers on the Big Board today, following a report that a new set of rules from the New York State Liquor Authority (SLA) could put a major dent in GrubHub's fee income. Specifically, sources told the New York Post that the new rules could cut fees from 15%-30% of a takeout order down to 10%, and could require the company "to be listed on thousands of liquor licenses, creating a potential trove of legal liabilities and bureaucratic hassles." Against this backdrop, GRUB stock is reeling, and options are flying off the shelves.

GRUB shares are down 4.4% to trade at $73.70, set to close beneath their 20-day moving average for the first time in more than a month. Prior to today, the equity had been in rebound mode, gaining roughly 30% from its May 20 annual low of $60.30 to its recent peak in the $78-$79 area -- a region that emerged as a speed bump over the past couple of weeks.

GRUB stock chart july 11

So far today, about 2,500 GrubHub puts have crossed the tape -- two times the average intraday volume. Meanwhile, roughly 3,400 GRUB calls have traded -- 1.6 times the norm. Most active is the weekly 7/12 75-strike call, which has seen notable buy-to-open action. By purchasing the calls to open, the buyers expect the shares to bounce back atop the $75 marker by week's end, when the options expire.

Elsewhere, several short sellers are likely cheering the aforementioned Post report. Short interest accounts for nearly 20% of the security's total available float, or about seven days of trading, at GRUB's average daily volume.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.