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Playing the Ponzi
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Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
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Playing the Ponzi
  • GRPN Breaking Down At Trend Line Resistance 0 comments
    Dec 4, 2012 12:12 PM | about stocks: GRPN

    On an intuitive level, I've been a Groupon (NASDAQ:GRPN) 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.

    (click to enlarge)

    Stocks: GRPN
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