27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Someone with a lot of money to spend has taken a bearish stance on Alibaba Group Holding (NYSE:BABA).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with BABA, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 19 uncommon options trades for Alibaba Group Holding.
This isn't normal.
The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $1,117,015, and 15 are calls, for a total amount of $1,618,101.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $95.0 to $210.0 for Alibaba Group Holding over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Alibaba Group Holding's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Alibaba Group Holding's whale activity within a strike price range from $95.0 to $210.0 in the last 30 days.
Alibaba Group Holding Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| BABA | PUT | TRADE | BEARISH | 06/17/22 | $210.00 | $1.0M | 4.0K | 98 |
| BABA | CALL | SWEEP | BEARISH | 06/24/22 | $95.00 | $317.0K | 6.0K | 1.9K |
| BABA | CALL | SWEEP | BULLISH | 06/17/22 | $105.00 | $297.4K | 15.9K | 1.0K |
| BABA | CALL | SWEEP | BEARISH | 07/15/22 | $130.00 | $230.2K | 20.1K | 2.1K |
| BABA | CALL | SWEEP | BEARISH | 06/24/22 | $95.00 | $191.2K | 6.0K | 4.5K |
Where Is Alibaba Group Holding Standing Right Now?
- With a volume of 13,574,489, the price of BABA is up 6.8% at $108.35.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 46 days.
What The Experts Say On Alibaba Group Holding:
- Truist Securities has decided to maintain their Buy rating on Alibaba Group Holding, which currently sits at a price target of $145.
- Citigroup has decided to maintain their Buy rating on Alibaba Group Holding, which currently sits at a price target of $176.
- Barclays has decided to maintain their Overweight rating on Alibaba Group Holding, which currently sits at a price target of $161.
- Benchmark has decided to maintain their Buy rating on Alibaba Group Holding, which currently sits at a price target of $200.
- Baird has decided to maintain their Outperform rating on Alibaba Group Holding, which currently sits at a price target of $144.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Alibaba Group Holding, Benzinga Pro gives you real-time options trades alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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