Alibaba Winning The Red Envelope War; Lucky Money Campaign Draws More Than $650 Million


27% profit every 20 days?

This is what Nic Chahine averages with his option 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.


Alibaba Group Holding Ltd’s (NYSE: BABA) e-payment system, Alipay, informs that more than 100 million people sent gift money via mobile apps during the Chinese Lunar New Year holiday. In the context of Alibaba’s Lucky Money campaign, Alipay processed more than 4 billion yuan ($652 million) of gift money.

But, why are people giving out money?

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The wildly popular Lucky Money campaign rethinks (or slightly spins, actually) a millenary Chinese tradition: “hongbao.” According to this custom, on Lunar New Year’s Eve, grown ups give children red envelopes filled with money. However, in this case, most of the people sending money via Alipay were in their 20s, and resided in the cities of Shanghai, Hangzhou, Beijing and Guangzhou, state-run Xinhua news agency reported.

 

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Other Chinese companies (Tencent Holdings, Baidu, Inc. (NASDAQ: BIDU)and Sina Corporation (NASDAQ: SINA) ) also tried to get a piece of the “red envelopes” cake, and offered a similar feature. However, their success seems to have been mire limited.


27% profit every 20 days?

This is what Nic Chahine averages with his option 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.


Posted In: NewsHotTechAliPayChinese Lunar New YearChinese New YearLucky MoneyRed EnvelopeXinhua