Bear Call on GRPN (Real Trade)

Reasoning:
1) Fundamentally the stock seems over valued.

2) Technical analysis might not be useful as the stock was a recent IPO.

3) Option pricing is indicating that you can be paid to short the shares and hold them.

Last time I saw this type of option pricing the stock proceeded to decline. See my post on Inverted Collar – GRMN. If you can find shares to short you can repeat what I did in the inverted collar trade for low/no risk profits.

Entry Point:

BTO Dec Long Call Strike 28

STO Dec Short Call Strike 24

NET Credit of  $1.1

Risk of $2.9

Exit Points:
Primary Exit (PE): Let options expire worthless.
Secondary Exit (SE):
Roll position out in time as long as the option pricing exists.

Trade was filled on 11/15

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