Deep-pocketed investors have made a bold move with Alibaba Group Holdings BABA.
This caught the eye of retail traders who ought to pay heed.
The rumbling began today when significant trades emerged in the publicly available options history monitored closely by market observers.
Whether these trades stem from institutions or affluent individuals remains a mystery. Yet, such substantial activity surrounding BABA often signals insight ahead.
So, what exactly did these investors do?
Today, the options scanner at Benzinga picked up on 17 rare options trades for Alibaba Group Holdings.
This is no run-of-the-mill occurrence.
The prevailing sentiment among these high rollers is divided, with 58% indicating a bullish bias and 41% leaning bearish.
Among the distinctive options uncovered, 7 are puts amounting to $389,878, while 10 are calls totaling $378,350.
Deciphering the Target Price
An examination of the Volume and Open Interest in these contracts suggests that major players have their sights set on a price bracket ranging from $75.0 to $125.0 for Alibaba Group Holdings over the preceding quarter.
Scrutinizing Volume & Open Interest
Presently, the average open interest for Alibaba Group Holdings options stands at 3,747.59, with total volume hitting 4,046.00. The graph below charts the evolution of call and put option volume and open interest for substantial trades in Alibaba Group Holdings, centered on the strike price corridor stretching from $75.0 to $125.0, across the last 30 days.
Alibaba Group Holdings Options Frenzy: Recent 30-Day Analysis
Highlighted Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BABA | PUT | SWEEP | BULLISH | 07/26/24 | $2.58 | $2.25 | $2.25 | $78.00 | $90.0K | 1.1K | 1 |
| BABA | PUT | TRADE | BEARISH | 09/20/24 | $3.4 | $3.35 | $3.4 | $75.00 | $83.9K | 16.0K | 314 |
| BABA | CALL | SWEEP | BEARISH | 06/20/25 | $4.05 | $3.85 | $3.85 | $100.00 | $77.0K | 2.7K | 203 |
| BABA | PUT | TRADE | BEARISH | 10/18/24 | $5.25 | $5.2 | $5.25 | $77.50 | $75.0K | 162 | 215 |
| BABA | CALL | TRADE | BULLISH | 03/21/25 | $4.65 | $4.6 | $4.65 | $90.00 | $52.0K | 1.2K | 212 |
About Alibaba Group Holdings
Alibaba stands as the globe’s largest online and mobile commerce entity by gross merchandise volume. It oversees China’s online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The commerce retail segment in China is the most lucrative cash-flow unit at Alibaba. Other revenue streams comprise China commerce wholesale, international commerce retail/wholesale, local consumer services, cloud computing, digital media and entertainment platforms, Cainiao logistics services, and innovation initiatives/other.
Following an in-depth appraisal of the options dealing tied to Alibaba Group Holdings, a more detailed examination of the firm is in order, encompassing its existing market stance and performance.
Present State of Alibaba Group Holdings
- Trading volume tallies 7,956,937, with BABA’s price dipping by -0.72%, resting at $76.09.
- RSI indicators hint that the stock may be on the verge of overbought territory.
- An earnings announcement looms just 16 days away.
The realm of trading options brings elevated risks but also proffers the potential for amplified gains. Astute traders adeptly manage these perils by staying informed through ongoing education, adapting strategies, leveraging diverse indicators, and staying in the know regarding market dynamics. Stay abreast of the latest options positions on Alibaba Group Holdings with Benzinga Pro for instantaneous notifications.