Jon Najarian Sees Unusual Options Activity In Alibaba

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On CNBC's Fast Money Halftime Report, Jon Najarian spoke about unusually high bullish options trading activity in Alibaba Group Holding Ltd BABA.

He explained that the stock traded slightly higher on Friday after it dropped below $100 this week on earnings results. Najarian noticed that somebody bought 10,000 contracts of the November 101 calls on Wednesday and he added that it was a call spread as there was also a sale of 10,000 contracts of the November 105 calls.

The total cost of the call spread was $0.85, which sets break even for the trade at $101.85. It can maximally make $3.15. Najarian decided to follow the trade.

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Posted In: CNBCOptionsMarketsMediaFast Money Halftime ReportJon Najarian
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