Can Alibaba Head to Post-IPO Prices?

By Sang Lucci Uncategorized

By Sang Lucci

Alibaba shares have been in a range throughout most of year, oscillating between $75 and $80. All breaks above $80 have been cut short quickly, similar to many other names in the year most traders have dubbed; “2016 – the year of the fake breakout”.

Recently, the landscape has changed with the S&P at all-time high and swing longs actually sticking to higher prices. BABA has broken short-term resistance and looks poised for a move to $85. If you recall, pre-IPO price for Alibaba shares was around $68 and the stock, due to incredibly high demand, opened for business right under $90.

Options flow for the past few sessions have all pointed towards traders betting on higher prices. Scroll through the slider below to see for yourself!

Earnings are scheduled for August 12th and the player who purchased $4 mm worth of $75 calls clearly wants just the delta without having to pay too much premium on top. The October buyers are paying up for some added time so they’ll need a more aggressive move to be able to take the trade for profit.

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About the Author

Sang Lucci

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Anand Sanghvi, aka "Lucci", is the founder and head trader at Sanglucci.com. Anand has successfully traded equities and options since 2006, beginning his career as a proprietary trader at PTG Capital. Anand was named head trader utilizing tape reading and options to make his plays. Anand left in 2009 to manage his own money and infamously turned $50,000 into over $2,400,000. He soon founded Sanglucci.com.

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