Alibaba (BABA) is seeing some follow-through selling this morning due to weakness in China stocks after retailer VIPs reported disappointing earnings this morning. The stock has broken below $110, which is a critical level for it. I’m watching it closely for signs that it can recapture that level, which would pave the way for a continued move higher. That’s less than a 1% move from current prices in the stock, and is very doable given this stock’s swings (which we’ve used to our advantage before). Hang on to your BABA calls for now, and I’ll keep you updated.
BABA November $110 Calls: Hold for a Bounce
Alibaba (BABA) is seeing some follow-through selling this morning due to weakness in China stocks after retailer VIPs reported disappointing earnings this morning. The stock has broken below $110, which is a critical level for it. I’m watching it closely for signs that it can recapture that level, which would pave the way for a continued move higher. That’s less than a 1% move from current prices in the stock, and is very doable given this stock’s swings (which we’ve used to our advantage before). Hang on to your BABA calls for now, and I’ll keep you updated.