Dan Nathan Sees Unusal Options Activity In Alibaba Group Holding Ltd

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On CNBC's Options Action
, Dan Nathan spoke about an options trading strategy that he noticed on Monday in
Alibaba Group Holding LtdBABA
. He said that somebody placed a large bet that the stock is going to trade range bound in the next six weeks by selling 3,000 contracts of the November 85 puts and 3,000 contracts of the November 95 calls for a total of $7.30. The break even for this trade is at $77.70 on the downside and at $102.30 on the upside. Nathan suspects that this trader already holds a long position in the stock and that he expects to profit from a decline in volatility and from the sideways trading of the stock.
Alibaba Group Holding Ltd
fell 1.89 percent on Monday and it closed at $88.75.
Posted In: CNBCMediaDan NathanOptions Action
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