Alibaba closed at $101.82 with a -2.48 percent change.
Large options trades for Alibaba were decisively bearish on the day, dominated by two in-the-money put purchases worth a combined $27.41 million. The largest print was a $19.87 million double-put combination, followed by a $7.54 million single-leg long put, with both positions targeting downside exposure across multiple expirations and showing traders were willing to pay substantial premium for protection or directional conviction.
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Options Indicators
Alibaba’s implied volatility is 45.52%, and with an IV percentile of 48.61%, current option pricing sits in a neutral volatility zone rather than at an extreme. In other words, options are neither especially cheap nor especially expensive versus their own recent history, while the IV/HV ratio of 1.41 shows implied volatility is running above historical realized volatility, suggesting the market is pricing in more forward uncertainty than the stock has recently delivered. The Call/Put volume ratio is 1.29.
Large Trades
A bearish put combination with a net debit of $19.87 million was the largest displayed trade, structured as a same-direction double-put purchase that points to a strong directional downside view. The trader bought the January 15, 2027 $150.00 put and the October 23, 2026 $110.00 put, with both legs in the money versus the $101.655 stock reference. Because this combination includes two bought puts, it is best read as a put-heavy spread-style directional package rather than a hedge sale, and the preprocessed net debit of $19.87 million shows the trader was willing to pay a substantial premium for downside exposure across two expirations. Strategically, this suggests an aggressive bearish bet on sustained weakness and potentially elevated downside volatility over both the medium and longer term.
A single-leg put purchase worth $7.54 million added to the negative tone, with the buyer taking 1,540 contracts of the January 15, 2027 $150.00 put. This strike is also in the money against the current stock price, so the trade carries immediate intrinsic value along with longer-dated downside optionality. As a standalone long put, it reflects a clear bearish stance, likely expressing either conviction that BABA can remain under pressure for an extended period or a desire to secure substantial downside protection with time still on the contract. Overall, the large-trade flow is decisively bearish: the displayed trades are concentrated in bought in-the-money puts, showing traders were paying up for downside exposure rather than collecting premium, which typically signals defensive positioning or outright expectations of further weakness in the stock.
Strategy Reference
For traders who prefer defined risk without posting large margin, a bear put spread such as buying the $100.00 put and selling the $90.00 put in the nearest monthly expiration could offer a balanced risk-reward, while a seller seeking low assignment probability could look at out-of-the-money puts below $85.00, though the prevailing bearish large-trade flow warrants caution on naked premium selling.
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