Break-even: I break-even on this trade if GRPN closes at $12.30 on May 18, 2012.
Unprofitable: I lose money on this trade if GPRN closes above 12.30 May 18, 2012. The most I can lose on this trade is the amount I paid can be worth $1 minus the price I sold it for, $.30 for a total of $.70.
Reason I Like This Trade: GRPN has rallied today, but I want to take advantage of this by Selling a Call Spread into Earnings. If it breaks $12, it could rip way higher, so that is why I want to sell the $12 level, because I do not think stock will rally though there.
UPDATE 5.15.2012 With Groupon rallying hard this Spread is worth $.65. I am glad that I sold Call Spreads and only lost $.35, because if I sold stock I would have lost more money. On to the next trade.
UPDATE 5.16.2012 When GRPN was trading $12.20 this morning, I took this trade off for $.35 for a scratch, moving to the next trade.