From Nasdaq: 2024-05-06 11:01:32

New options for Alibaba Group Holding Ltd (BABA) started trading for the September 2025 expiration, offering potential opportunities for sellers of puts or calls. A put contract at $80.00 strike price has a bid of $9.00, representing a 1% discount with a 65% chance of expiring worthless, providing a 11.25% return.

On the calls side, a call contract at the $90.00 strike price has a bid of $13.00. Selling as a “covered call” means committing to sell shares at $90.00, with a potential 27.54% return if called away at expiration, and a 44% chance of expiring worthless, resulting in a 16.10% boost.

Implied volatility in the put contract is 39% and 42% in the call contract, with actual trailing twelve month volatility at 36%. For more options contract ideas, visit StockOptionsChannel.com.



Read more at Nasdaq: BABA September 2025 Options Begin Trading