Home > charting trendlines, Financial Ponzi, stock charts, technical analysis > GRPN Breaking Down at Trend Line Resistance

GRPN Breaking Down at Trend Line Resistance

On an intuitive level, I’ve been a Groupon Bear from Day 1.  It’s not that I don’t like the product offering.  Heck, I used a Groupon offer to stay in a ritzy Washington D.C. hotel this last weekend, and it was a great value.  However, I struggle to see how a Middle-Man re-selling desperately cheap offers can secure long term business success.  Plus some have questioned the accounting.  So I’ve been interested in shorting GRPN for awhile, but for whatever reason, E*Trade wouldn’t let me short the stock itself.  So with GRPN’s recent rally (75% in 15 calendar days), I finally got my short on via Put options.  The options are still dirt cheap, with in-the-money $5 Dec 22 Puts currently pricing in just .08 of time premium.  Leverage for darn near free.

2012-12-04-GRPN_CHARTS

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