Bonta
2022-06-09

Some random guessing.

$Alibaba(09988)$is likely to be range bound between 120-90 until next positive earnings or end of the year whichever is earlier before a rally may happen with Low target of $135 and higher target of $180.

Reason being, $120 is strong resistance level, and the price action seems to be muted after reaching it. There's lack of strength to carry through. 

In addition, the catalyst is also weird, I dun see the link between gaming approval and Alibaba. Tencent yes, Alibaba no. Markets seema to be finding a reason for pent up rally to rally. 

Alibaba is definitely still growing and will continue to do better, however likely will need more solid and relevant news for more investors to pile in and start their FOMO investing. 

Hence, I am of the opinion that unless there's real gd news to power Alibaba up, it will have to depend on positive earnings report orthe feel good rally before and after China party congress in November.

https://asia.nikkei.com/Politics/China-to-hold-party-congress-in-November-report

I was already having a riot adjusting my $Alibaba(BABA)$$Alibaba(09988)$options these few days... the sudden and aggressive rally threw my positions all over the place. 

Busy rolling both my call and put options [LOL] [Facepalm] 

Hope that Alibaba give me some time to settle the Happy problems that it's giving me now. 

[Cool] 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • bwjx
    2022-06-11
    bwjx
    Lol. Are you holding baba for long term are trading it. Kind of confuse after looking at the portfolio but good luck managing it. [Happy] [Happy]
    • Bonta: 
      It does deviate from conventional buying and selling. Maybe thats y it looks confusing
    • Bonta: 
      [Thinking] its a mix of trading and investing. [Grin] i dun want to own baba shares directly. I own baba through option as proxy. As baba doesnt give dividends, the options become a form of income.
  • charlito
    2022-06-10
    charlito
    its a great company
  • Wgey
    2022-06-11
    Wgey
    Alicloud is next area of growth.
  • seejay
    2022-06-11
    seejay
    are those naked/spread?
    • Bonta: 
      My baba positions are short strangles. Sell calls and sell puts at the same time.
  • 88wlam88
    2022-06-10
    88wlam88
    Baba will need the genie & the flying carpet to fly high…..
  • Lynn098
    2022-06-10
    Lynn098
    Looks like you are professional in option spreads
    • Bonta: 
      [Blush] thanks hahac but i am far from it. I dun really like spreads unless its for short term trades as its harder to adjust and needs more monitoring, better returns though
Leave a comment
18