Analysis on: BABA
Hey Real Life Traders! How are you? I trust you are marvelous. I've gotten many requests on BABA recently. So many in-fact, I decided to do an article. YES!
BABA has experiences some wild volatility recently. Some very intense gaps and volume coming in on BABA. But, if we take a step back and really glance over it, BABA is still sideways since 3/21/2016.
This has been great for those in shares to reduce their cost by doing covered calls. Also, this sideways action has been fun for option traders. I got into a 72.50 / 70 June bull put spread on May 11th and then legged into the 85 / 87.50 June bear call spread (completing the iron condor) on 6/1/16.
If you're keeping your eyes on BABA, it did form a one white solider on June 6th, 2016 off of a good support. The 100/200 SMA's are acting as a good support too. If BABA moves higher, one could consider some directional June calls up into $81, some July bull put spread action or some put sales.
Bottom line, BABA looks very sideways and overall more bullish than bearish. Play accordingly, lose small and win big! Until next time, remember,
Love life, live life and trade it!