Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

Alibaba Group Holding  / Equity Derivatives

<ul>
<li>
Context: Over the past five trading days, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> live multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>
Highlights: Diagonal Spreads continue to enjoy popularity. Strategies tend to have a short-term horizon and exhibit a slightly bearish bias.</li>
<li>
Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,</li>
</ul>



Context: Over the past five trading days, Alibaba Group Holding (9988 HK) live multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.

Highlights: Diagonal Spreads continue to enjoy popularity. Strategies tend to have a short-term horizon and exhibit a slightly bearish bias.

Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,


Alibaba (9988 HK): Top Trades and Strategic Insights from Options Trading

<ul>
<li>
Context: Analysis of <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba's (9988 HK)</a> implied volatility surface as of June 20, 2025, examining implied volatility patterns, skew structures, and open interest distribution across various expiry dates.</li>
<li>
Highlights: One-month implied volatility at 31.6% is trading at historically cheap levels (13th percentile), while the skew shows a pronounced volatility smile favoring spreads.</li>
<li>
Why Read: Essential for options traders and volatility strategists looking to capitalize on the historical cheapness of current implied volatility levels, particularly given the favorable skew structure for spread strategies.</li>
</ul>



Context: Analysis of Alibaba's (9988 HK) implied volatility surface as of June 20, 2025, examining implied volatility patterns, skew structures, and open interest distribution across various expiry dates.

Highlights: One-month implied volatility at 31.6% is trading at historically cheap levels (13th percentile), while the skew shows a pronounced volatility smile favoring spreads.

Why Read: Essential for options traders and volatility strategists looking to capitalize on the historical cheapness of current implied volatility levels, particularly given the favorable skew structure for spread strategies.


Alibaba (9988 HK) Options Insights: Navigating Contango and Skew for Profitable Trades

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul><li>Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations while falling short of analyst expectations on key financial metrics.</li><li>The company reported revenue of $32.58 billion for the quarter, marking a 7% year-over-year increase, but this fell below projections of $33.28 billion.</li><li>Net income for the period came in at $1.71 billion, significantly lower than the anticipated $2.93 billion.</li></ul>

Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations while falling short of analyst expectations on key financial metrics.The company reported revenue of $32.58 billion for the quarter, marking a 7% year-over-year increase, but this fell below projections of $33.28 billion.Net income for the period came in at $1.71 billion, significantly lower than the anticipated $2.93 billion.

Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!

<ul>
<li>Over the past five trading days, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.</li>
<li>
Popular Strategies: Over 35% of all strategies are Calendar or Diagonal Spreads. Bullish and bearish views prevail at equal rates, with very few market-neutral views expressed.</li>
<li>
Top Trades: Some market participants were betting on a short term re-bound after the post-earnings drop. Others take a bearish view with finely calibrated medium-term hedges. Trade-examples are presented.</li>
</ul>


Over the past five trading days, Alibaba Group Holding (9988 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.

Popular Strategies: Over 35% of all strategies are Calendar or Diagonal Spreads. Bullish and bearish views prevail at equal rates, with very few market-neutral views expressed.

Top Trades: Some market participants were betting on a short term re-bound after the post-earnings drop. Others take a bearish view with finely calibrated medium-term hedges. Trade-examples are presented.


Alibaba (9988 HK): Unpacking the Week's Savvy Top Options Trades

<ul>
<li>
Implied Volatility Trends:<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding's (9988 HK)</a> one-month implied volatility has significantly receded to the 37th percentile after its 15 May earnings, reflecting a substantial implied vola crush.</li>
<li>
Skew and Term Structure Dynamics: The implied volatility term structure is now slightly upward-sloping with longer-dated options commanding a small premium. Skew dynamics indicate cheaper puts.</li>
<li>
Open Interest Distribution: Liquidity is greatest in the June and September expiries. Short term strikes are concentrated near or at the money.</li>
</ul>



Implied Volatility Trends:Alibaba Group Holding's (9988 HK) one-month implied volatility has significantly receded to the 37th percentile after its 15 May earnings, reflecting a substantial implied vola crush.

Skew and Term Structure Dynamics: The implied volatility term structure is now slightly upward-sloping with longer-dated options commanding a small premium. Skew dynamics indicate cheaper puts.

Open Interest Distribution: Liquidity is greatest in the June and September expiries. Short term strikes are concentrated near or at the money.


Alibaba (9988 HK): Navigating Post-Earnings Volatility

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba Group Holding (9988 HK)

Alibaba (9988 HK): Top Trades and Strategic Insights from Options Trading

Insights on market sentiment and actionable examples. Alibaba multi-leg option strategies show popularity of Diagonal Spreads with short-term...

Gaudenz Schneider

Alibaba (9988 HK) Options Insights: Navigating Contango and Skew for Profitable Trades

Analysis of Alibaba's implied volatility surface shows historically cheap implied volatility and favorable skew structure for spread strategies.

Gaudenz Schneider

Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!

Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations...

Baptista Research

Alibaba (9988 HK): Unpacking the Week's Savvy Top Options Trades

Alibaba Group Holding's recent multi-leg option strategies show a mix of bullish and bearish approaches, with Calendar and Diagonal Spreads being...

Gaudenz Schneider

Alibaba (9988 HK): Navigating Post-Earnings Volatility

Alibaba's implied volatility drops post-earnings and displays a less smirky smile. Liquidity highest in June and September expiries.

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Alibaba (9988 HK): Top Trades and Strategic Insights from Options Trading

Insights on market sentiment and actionable examples. ​Alibaba multi-leg option strategies show popularity of Diagonal Spreads with short-term...

Gaudenz Schneider

Alibaba (9988 HK) Options Insights: Navigating Contango and Skew for Profitable Trades

​Analysis of Alibaba's implied volatility surface shows historically cheap implied volatility and favorable skew structure for spread strategies.

Gaudenz Schneider

Alibaba’s Bold AI & Cloud Bet Is Driving Our Optimism–But It Comes at A BIG COST!

Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations...

Baptista Research

Alibaba (9988 HK): Unpacking the Week's Savvy Top Options Trades

​Alibaba Group Holding's recent multi-leg option strategies show a mix of bullish and bearish approaches, with Calendar and Diagonal Spreads being...

Gaudenz Schneider

Alibaba (9988 HK): Navigating Post-Earnings Volatility

​Alibaba's implied volatility drops post-earnings and displays a less smirky smile. Liquidity highest in June and September expiries.

Gaudenz Schneider

Insights on market sentiment and actionable examples. Alibaba multi-leg option strategies show popularity of Diagonal Spreads with short-term...

Analysis of Alibaba's implied volatility surface shows historically cheap implied volatility and favorable skew structure for spread strategies.

Alibaba Group Holding's recent multi-leg option strategies show a mix of bullish and bearish approaches, with Calendar and Diagonal Spreads being...

Alibaba's implied volatility drops post-earnings and displays a less smirky smile. Liquidity highest in June and September expiries.