Put Options on BABA on 3/14/2022

Alibaba Group Holding Limited (BABA) provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. Broken Support $BABA

It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others.

The company operates Taobao Marketplace, a social commerce platform; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; and Tmall Global and Kaola, which are import e-commerce platforms.

It also operates Lingshoutong that connects FMCG manufacturers and their distributors to small retailers; Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange.

Further, it provides elastic computing, database, storage, virtualization network, large-scale computing, security, management and application, big data analytics, machine learning platform, and Internet of Things services. 

Shares of this Chinese giant have fallen below all supoorts and are trading below their IPO price. The decline in share prices are expected to continue.

 

We will be trading April 1, Put Options

 

Last Trade: $86.71

Trading Range: $86.68 - $245.69

Trade

  • Buy 1 April $85.00 Put at $6.00
  • For a net debit of $6.00

Profit/Loss Analysis

  • Breakeven at $79.00
  • Maximum profit is unbounded
  • Maximum loss is ($600.00) at strike of $85.00

Closing Summary

  • Sold 1 April $85.00 Put at $0.00

Position closed on 3/29/2022 at price of $0.00 with a -100.00% loss in 15 days.

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