Amazon 2.5% of float
Google 1.7% of float
Yahoo! 3.4% of float
Yahoo! is the highest at 3.4%, but even at 3.4%, the stock is not under pressure by short sellers piling on. Now we look at Groupon.
I like the September $20 put options at $1.85 for an entry method into Best Buy. The options are currently trading for about $1.75, leaving a cost basis for shares of $18.15 if the stock falls further. Selling put options is less risky than buying the shares outright, plus an investor can profit even if the shares fall a little further than the current trading range today.Groupon's earnings release is scheduled after the market closes about a month from now, on August 8. Anyone buying shares is betting on the growth story, and the ability to monetize the growth. Like Best Buy, I will admit the option premium with Groupon appears attractive. Selling volatility with losers can get ugly very fast and stop losses are a must. With that said, a bullish credit spread selling one August $8 put at 85 cents and buying one August $6 put for 25 cents for a net credit of 60 cents appears to offer a reasonable risk-to-reward ratio. The most that this type of trade can lose is $1.40, with a potential profit of 60 cents. Bottom line: If asked to pick the biggest loser of the two, I've got to go with Groupon. What an ugly dog. >>Read my take on small business and Obamacare