On Tuesday, November 29th, Market Rebellion Co-Founder Pete Najarian gave away a slam dunk of an options trade for Rebel’s Edge viewers: Alibaba $92 strike call options, expiring December 16th. Those calls came hot on the heels of two separate purchases the day before in the same ticker.
Those Alibaba $92 strike calls were 14.6% out of the money, and those calls did cost an average of $1.18 per contract.
However, Alibaba has rallied hard over the past week, bringing these calls to nearly at the money levels with two weeks remaining in the trade. As a result, those options are now worth $4.8 at the time of writing — 4X the original price paid.
Here's that segment from Rebel's Edge in case you missed it!
Missed out on the (BABA) play? Don’t kick yourself, just don’t miss out on the next one. Both Jon and Pete give a fresh piece of unusual options activity live on every episode of Rebel’s Edge, which streams at 1PM EST Monday-Thursday. Sign up today to get notified when Jon and Pete go live next!
