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Why one of the biggest IPOs this year is a ‘no touch’

Blue Apron shares have fallen 37 percent since its IPO, and one trader warns that the stock is a "no touch" ahead of its first earnings report scheduled for Thursday.

The meal-kit delivery kit service went public on June 29 at $10 a share, but since then its shares have plummeted to single digits.

Despite six analysts' buy ratings and only one sell rating, Blue Apron is "another name with a very big short interest, and the options market doesn't like it very much, and the forward price is significantly lower," Mike Khouw of Optimize Advisors said Thursday on CNBC's "Options Action."

The company has its first earnings report since going public before the bell on Thursday, Aug. 10, and the options market is implying about a 16 percent move in either direction.

"I think this stock is a no touch," Khouw said.

Shares of Blue Apron were trading around $6.25 midday Friday.

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