I just bought 10 Vipshop (VIPS) long Calls. I’ve been in this stock before, and I watch it once in a while. Today I liked the way the chart looked for a little pop. I didn’t want to invest in the stock but I saw a nice option to buy. With the stock at $9.50 I bought 10 contracts of the 1/17/20 $9 Calls. I paid a $1.30 premium for an investment of $1300. I would love to get a $1 onto the premium and get out but I’ll be happy with 50¢ for a $500 gain. I paid a little more for the $9 Strike Price with the stock at $9.50 but I got a .64 Delta. This option is 50¢ In-the-Money. The $1.30 premium has 50¢ of intrinsic value I paid for to get the nice Delta.
Buy to Open 10 VIPS 1/1720 $9.00 C @ $1.30 ($1300)
I hoping to be in this position for about 2 weeks. Buying options is a risky business so this trade gets a Risk Factor 4.
Successful Trading,
Steve
The Options Coach