On Tuesday, November 29th, Market Rebellion Co-Founder Pete Najarian gave away a slam dunk of an options trade for Rebel’s Edge viewers: Alibaba $92 strike call options, expiring December 16th. Those calls came hot on the heels of two separate purchases the day before in the same ticker.
Those Alibaba $92 strike calls were 14.6% out of the money, and those calls did cost an average of $1.18 per contract.
However, Alibaba has rallied hard over the past week, bringing these calls to nearly at the money levels with two weeks remaining in the trade. As a result, those options are now worth $4.8 at the time of writing — 4X the original price paid.
Source: Google, Market Rebellion Unusual Options Activity
Here’s that segment from Rebel’s Edge in case you missed it!
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Source: https://www.thestreet.com/investing/options/pete-najarians-alibaba-unusual-options-activity-keeps-running?puc=yahoo&cm_ven=YAHOO&yptr=yahoo