BABA is seeing some wrath of the CCP. It's a clear COVID winner like AMZN, but since the failed IPO of Ants Financial from Jack Ma's less-than-flattering speech on the eve of the biggest IPO ever, CCP pulled the plug on the parade. Last night, there was a crash of BABA's price in HK market, then the US market followed.
My plans are to wait for the price to come down to test today's low ($211.50) perhaps a few times before starting to go into the gap as we get closer to the earnings. Maybe the sentiment may change in China after the Lunar New Year...?
#tradeidea - wait for the price to test the lows - sell credit put spreads - When in the gap, buy calls if the sentiment in China has changed.