Groupon Shares Volatile Amid Heavy Volume and a Series of Block Trades (GRPN)

Following a meeting with the

management team, Deutsche Bank praised the company on Tuesday, sparking a three-day rally. The report, which was released Tuesday afternoon, praised the company for its adoption of mobile and utilization of the hot medium. Comments from the report noted that the energy in the company was decidedly upbeat, and that analysts came away feeling “better” about a number of things covered at the investor meeting. Come Wednesday, traders took hold of the stock and moved to the bullish side, with a series of large block trades totaling almost 2 million shares crossing the wires at 1:55 pm. The orders lead to a significant rally as the stock closed up three percent for the day. While news on the name was thin Thursday, traders took hold of the stock, moving it in the bullish direction. As the market opened on Thursday morning, shares dropped sharply for about 10 minutes before a rally was triggered. From there a new 52 week high was hit at $12.17 by 10.53. Giving the stock some strength were large blocks of calls crossing the wires. One block of 1500 October 4.50 calls at 7.35, and another of 1500 October 4.50 calls at 7.30, both blocks fired off at 10:20 am EST. Later in the morning at 11:07 a block of over 750 thousand shares crossed at 11.95, giving the stock a significant bounce at the time. Following the significant price action, Groupon traded up four percent to $12.00.