To The Moon

This week could be particularly boring. In other words, the VIX will remain down this week.

Despite the media hype that Wall Street is buying VIX calls all over the place, is it actually not leaders and customers to buy? National debt may default, such a big thing, the fund private equity does not hedge at all? Can you write an article saying there's nothing wrong so don't panic? Even if the boss believes it, the client doesn't.

Traders have to hedge. So that the transaction report will have content, so that the client management fee is not paid for.

Compared with the exuberance of VIX options, equity options have been lacklustre.

For example, this order opens on Friday and closes on Monday: $KWEB 20230519 28.5 CALL$ $KWEB 20230519 30.0 CALL$

Closing orders are also informative. This Thursday Alibaba report, why did not choose Ali after the report? One guess is that Alibaba's results won't make much of a splash.

Ali's options moves support this view, with little bearish strategy and mostly a bias towards fighting time loss or buying long at-the-money calls. For example:

buy $BABA 20231117 90.0 CALL$

Typical long call option

sell $BABA 20231215 60.0 PUT$

sell $BABA 20231215 120.0 CALL$

Typical range-bound, sell strangle strategy. I agree with the leg that sell put. Maybe Ali has the chance to sell 120 by the end of the year, so it is more reasonable to change the sell call due date to July 21.

buy $BABA 20230915 100.0 CALL$

sell $BABA 20230915 120.0 CALL$

A typical bullish spread strategy that sees an opportunity to move above 100 and below 120 on or after the earnings report.

Alibaba financial report current option strategy is divided into several exercise price stalls: 80-90, 90-100, 100-110, 110-120. Each stall strategy is different, you can carry out strategic planning according to their own views. Personally, I think selling put 60 is the most likely strategy to go wrong. sell put 80 is not a problem.