Changing directionless strategy to bullish strategy for Alibaba 

$Alibaba(09988)$ $Alibaba(BABA)$ had been range bound for a while.

Throughout this period, I took advantage of it by selling option strangles (concurrently selling calls and puts).

Lately baba has been showing breaking out of $120, which is bullish sign to me.

Hence, I am making preparations to change from neutral strategy (short strangles) to bullish strategy (short put)

The plunge to sub $110 gave me the opportunity today to start executing the change in strategy.

I closed the short call portion of the strangle

At $7.65.

In doing so, I have to pay $7.65.

I then open sold put position, by selling longer dated puts at $8.92.

In doing so, I am being paid to change my directional strategy.

$8.69-$7.65=$1.04

Receiving $1.04 in option premiums.

As I am unsure how fast and how much baba will rally, I will slowly convert my option strategy from selling strangles to selling puts over time. The more baba falls, the faster I will do my conversion in strategy.

Hope that the above post will be helpful to u, do remember to take note of capital requirements for opening new put positions. [Cool]

@TigerStars