Alibaba (BABA) has rebounded from its sharp drop on Monday, though the shares have yet to go on a strong run. However, based on this volatility, I believe the stock is poised for a multiple point move in the near term. With our call position nearing a 90% loss with just one day until expiration, the reward of holding out for this potential upside outweighs the risk. Continue to hold the BABA December $111 calls. I’ll be in touch if the outlook changes and we need to sell.