Paper bought to close 10,000 VIPS August 18 calls paying .1.?
Vipshop Holding Ltd ADR, trading 12.60 with an IV30 of 50.06 and an HV10 of 23.55, is seeing upside call action today.? The stock with an ADV of 5k and an OI of 290284 contracts saw a customer buy to close 10,000 of the August 18 call paying .1.? This was likely a close of an income call sale that took place several months back.? The calls, now worthless, were a close clearing up margin and clearing up ?the sheets.?
Based on this being a close, I would be on the lookout for this customer looking to sell other upside calls.? Based on the duration of this sale, the customer may be looking to sell calls in November or January as a way to produce income in a position.?
This trade should be considered neutral the stock and volatility.