Alibaba is overbought

3 thg 10, 2024

Alibaba is overbought now. With a +77 RSI on it's 1 week chart and also while it's trading at the top of it's 3 year range channel. Last week, China’s central bank shared plans to cut banks reserve requirement ratio (RRR) by 50 basis points or half a percentage point and lower the seven-day reverse repurchase rate to 1.5% from 1.7%. Additionally, China agreed to let homeowners refinance mortgages. Alibaba as the key beneficiary of the stimulus. BABA is trading nearly +30% in 2 weeks. I would expect a pullback 95 - 99 per share for bulls to wait for an entry and 115 -119 levels for bears to short it.

Options data:

10/11/24 expiry
Put Volume Total 4,415
Call Volume Total 12,021
Put/Call Volume Ratio 0.37
Put Open Interest Total 50,861
Call Open Interest Total 80,400
Put/Call Open Interest Ratio 0.63

10/18/24 expiry
Put Volume Total 2,387
Call Volume Total 6,410
Put/Call Volume Ratio 0.37
Put Open Interest Total 205,644
Call Open Interest Total 234,503
Put/Call Open Interest Ratio 0.88

11/15/24 expiry
Put Volume Total 2,111
Call Volume Total 1,661
Put/Call Volume Ratio 1.27
Put Open Interest Total 60,199
Call Open Interest Total 177,252
Put/Call Open Interest Ratio 0.34

3 thg 10, 2024

Ghi chú

3:1 trade idea
Short = 115
Stop = 120
Profit = 100

8 thg 10, 2024

Ghi chú

15 thg 10, 2024

Ghi chú

17 thg 10, 2024

Ghi chú

BABA hit 99 today

10 thg 1

Ghi chú