SPX3,911.74+116.01 3.06%
DIA315.02+8.28 2.70%
IXIC11,607.62+375.43 3.34%

Alibaba Rallies, Khouw Says Options Trades Are Betting Run Is 'Far From Over'

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Alibaba Group Holding (NYSE: BABA) traded more than five times its average daily volume on Wednesday

Benzinga · 06/09/2022 08:30

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Alibaba Group Holding (NYSE:BABA) traded more than five times its average daily volume on Wednesday. Over a million contracts were traded, he added.

Check out other tech stocks making big moves in the premarket.

There was a buyer of 4,575 of the January 150 calls at $6.70 per contract on average, Khouw mentioned. “That’s risking a little over $3 million in premium on a bullish bet that Alibaba’s run is far from over,” he stated.

The trade sees shares of Alibaba climbing at least 30% by January expiration, Khouw added.

BABA Price Action: Shares of Alibaba jumped 14.67% to settle at $119.62 on Wednesday.