NaughtyPines

BABA -- POST-EARNINGS/"SINGLES DAY" VOL AFTERGLOW

NYSE:BABA   ALIBABA GROUP HLDG LTD
With attractive earnings season plays quickly waning, I'm looking to play some instruments that still have a bit of earnings afterglow in terms of volatility. BABA ( IVR             58/IV 39) is one of those plays: not only does it still have some volatility left over from earnings, it's been subject to profit-taking after a post "Singles Day" sales figures run up/sell off.

Here's the play:

Dec 18th 67.5/90 short strangle
POP%: 77%
Max Profit: $138/contract
BPE: ~$790
BE's: 66.02/91.48

Notes: I decided to go out less than 45 days, since the Dec 24 expiry had limited short put strike availability below the 1 SD             (it widens to $5 increments). I'll look to take this off for 50% max profit ... .

Was filled pretty much immediately at 1.38. Love it when I don't have to chase price, but you could probably also attempt to get more if you're patient.
NaughtyPines
a year ago
Covered for 50% max profit.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out