NEW DIRECTIONAL CALL PLAYS

Vipshop Holdings Limited - VIPS - close: $70.55 change: +2.48

Stop Loss: 68.40
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VIPS operates an online discount retailer in China. The stock has been a popular play with the momentum crowd. Shares outperformed the market with a +3.6% gain today and set a new all-time closing high. The intraday high was hit yesterday at $71.80. JPMorgan recently issued positive comments on VIPS expecting the company to deliver better than expected earnings in the third and fourth quarter. If this rally continues the stock could see some short covering. The most recent data listed short interest at 8.7% of the very small 20.5 million share float.

Today's high was $71.03. More aggressive traders may want to buy calls on a rally above $71.00. We are suggesting a trigger to buy calls at $71.55. If triggered our target is $77.50.

Trigger @ 71.55

- Suggested Positions -

Buy the NOV $75 call (VIPS1316K75) current ask $4.80

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 1.25 million
Listed on October 16, 2013