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: www.jpmhkwarrants.co...tstanding/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: www.jpmhkwarrants.co...tstanding/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