r/baba
Highest implied volatility ever
The author notes BABA's implied volatility has reached an unprecedented 90-100% for 3 DTE options, indicating massive expected price swings for a $300B company.
Do you remember when was the last time the iv was 90-100% on 3 DTE options?
Meaning there is roughly one third chance of more than +-11% move till Friday and one in 20 chance of +-22% move. That is crazy for $300B company.
The combination of Alibaba earnings and the meeting with Xi makes a 20 percent move possible in 3 days.
This
I dont remember because i dont gamble with 3 DTE options
Move down
Sold 138 covered calls. It’s sold expensive that even if it hits 142 I’m break even. Hope it hits and I can offload some shares.
Because you know - earning?
I sold 170 strike 3 dte covered calls, if it hits that level I'm happy to have them called away.