Analysis:
Most margin positions of BABA (US market) / 9988.HK (HK market) are hitting their strike price in 24/12/2020. 230-234.8, the highest bull O/S price level bull contracts (28M USD equivalent derivatives) reached strike price and has been called (Reference: jpmhkwarrants.com/en_hk/cbbc/cbbc-outstanding/stock/9988)
Technically that triggers a forced selling on that day.
The imbalance supply creates a good timing for long call.
Meanwhile, most e-commerce companies such as Amazon and JD are still pricing at a relative high position
(Fact table:
AMZN: market cap: 1.598T, P/E: 93,
JD: Market Cap: 130.5B, P/E: 581.36,
BABA: Market Cap: 695.5, P/E: 27.5)
Strategy:
No clear direction in terms of price actions for BABA in the short term.
Looking for the market cap spread between Alibaba other similar films.
Employ -- neutral strategy:
JD put + BABA call options pair
Most margin positions of BABA (US market) / 9988.HK (HK market) are hitting their strike price in 24/12/2020. 230-234.8, the highest bull O/S price level bull contracts (28M USD equivalent derivatives) reached strike price and has been called (Reference: jpmhkwarrants.com/en_hk/cbbc/cbbc-outstanding/stock/9988)
Technically that triggers a forced selling on that day.
The imbalance supply creates a good timing for long call.
Meanwhile, most e-commerce companies such as Amazon and JD are still pricing at a relative high position
(Fact table:
AMZN: market cap: 1.598T, P/E: 93,
JD: Market Cap: 130.5B, P/E: 581.36,
BABA: Market Cap: 695.5, P/E: 27.5)
Strategy:
No clear direction in terms of price actions for BABA in the short term.
Looking for the market cap spread between Alibaba other similar films.
Employ -- neutral strategy:
JD put + BABA call options pair
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.