The premium is showing there though. This trade isn't even profitable unless grpn goes below $9 (and even then earnings are only $9-grpn_price). If grpn goes a

The premium is showing there though. This trade isn't even profitable unless grpn goes below $9 (and even then earnings are only $9-grpn_price). If grpn goes above $11, you lose grpn_price - 11. In other words, this is like shorting, only with $2 less on the upside - and that's where the premium shows. It's cheaper than buying straight puts, but way riskier. (Also, a lot of brokerages won't allow you to write naked calls) Disclaimer: I own a few grpn puts.