Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

Alibaba Group Holding  / Equity Derivatives

<ul>
<li>This Insight analyses <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 traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.</li>
<li>These traders tailor structures to risk budgets and take calculated bets. With implied volatility below its median and below realized volatility, all strategies reviewed are long volatility.</li>
<li>Almost 20% of all strategies are Calendar or Diagonal Spreads. Diagonal spreads can even earn premium in the current volatility environment. A live strategy is examined.</li>
</ul>


This Insight analyses Alibaba Group Holding (9988 HK) multi-leg option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
These traders tailor structures to risk budgets and take calculated bets. With implied volatility below its median and below realized volatility, all strategies reviewed are long volatility.
Almost 20% of all strategies are Calendar or Diagonal Spreads. Diagonal spreads can even earn premium in the current volatility environment. A live strategy is examined.


Alibaba (9988 HK): Top Trades - Strategies That Stand Out.

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul><li>Tesla has strengthened ties with Baidu amid the US-Sino tech crossfire, showcasing the complex dynamics between the two countries.</li><li>China achieves a breakthrough in semiconductor technology with EUV, while lawmakers propose anonymous semiconductor purchases to secure the industry.</li><li>VCI Global's plan to establish India's first semiconductor wire plant in Chennai marks a significant milestone for the tech industry in the country, with Alibaba's Tongyi Qianwen aiming to revolutionize China's AI.</li></ul>

Tesla has strengthened ties with Baidu amid the US-Sino tech crossfire, showcasing the complex dynamics between the two countries.China achieves a breakthrough in semiconductor technology with EUV, while lawmakers propose anonymous semiconductor purchases to secure the industry.VCI Global's plan to establish India's first semiconductor wire plant in Chennai marks a significant milestone for the tech industry in the country, with Alibaba's Tongyi Qianwen aiming to revolutionize China's AI.

Tech Supply Chain Tracker (18-Mar-2025): Tesla strengthens ties with Baidu amid US-China tech tensions.

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.

<ul><li>Alibaba Group Holding has made a significant move in the AI space with the release of its latest artificial intelligence model, QwQ-32B, as it seeks to establish itself as China’s leading AI developer, challenging DeepSeek.</li><li>The model, which excels in mathematical reasoning, coding, and problem-solving, demonstrates capabilities comparable to both DeepSeek’s R1 and OpenAI’s latest technology.</li><li>However, a key differentiator is its size, as QwQ-32B operates with only 32 billion parameters compared to DeepSeek R1’s 671 billion.</li></ul>

Alibaba Group Holding has made a significant move in the AI space with the release of its latest artificial intelligence model, QwQ-32B, as it seeks to establish itself as China’s leading AI developer, challenging DeepSeek.The model, which excels in mathematical reasoning, coding, and problem-solving, demonstrates capabilities comparable to both DeepSeek’s R1 and OpenAI’s latest technology.However, a key differentiator is its size, as QwQ-32B operates with only 32 billion parameters compared to DeepSeek R1’s 671 billion.

Alibaba Group’s AI Power Move—Can It Outpace DeepSeek and OpenAI?

<ul>
<li>While <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> rallied, lower in-the-money calls were closed, realizing gains, while higher out-of-the-money strikes gained popularity.</li>
<li>The median strike price lagged the sharp increase in stock price. The median strike currently stands at 107.50.</li>
<li>With 81% of March calls currently in-the-money and higher strikes trading at premium implied volatility, active trading is expected in the 150-170 strike range.</li>
</ul>


While Alibaba Group Holding (9988 HK) rallied, lower in-the-money calls were closed, realizing gains, while higher out-of-the-money strikes gained popularity.
The median strike price lagged the sharp increase in stock price. The median strike currently stands at 107.50.
With 81% of March calls currently in-the-money and higher strikes trading at premium implied volatility, active trading is expected in the 150-170 strike range.


Alibaba (9988 HK): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts

<ul>
<li>As <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> rallied, put strike distribution remained largely unchanged with median strikes only rising from 80 to 85, pushing protection increasingly deep out-of-the-money.</li>
<li>With most puts now deep out-of-the-money, active trading is expected in the 120-140 strike range.</li>
<li>The deep out-of-the-money put strikes trade at a significant premium to at the money implied volatility. The 130 strikes trade below, offering an opportunity for an effective hedge.</li>
</ul>


As Alibaba Group Holding (9988 HK) rallied, put strike distribution remained largely unchanged with median strikes only rising from 80 to 85, pushing protection increasingly deep out-of-the-money.
With most puts now deep out-of-the-money, active trading is expected in the 120-140 strike range.
The deep out-of-the-money put strikes trade at a significant premium to at the money implied volatility. The 130 strikes trade below, offering an opportunity for an effective hedge.


Alibaba (9988 HK): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts

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 - Strategies That Stand Out.

Analysis of Alibaba's multi-leg option strategies on the HK Exchange shows traders taking calculated bets with long volatility strategies,...

Gaudenz Schneider

Tech Supply Chain Tracker (18-Mar-2025): Tesla strengthens ties with Baidu amid US-China tech tensions.

Weekly news roundup: Tesla strengthens ties with Baidu amid US-Sino tech tensions, China makes EUV breakthrough in semiconductors, lawmakers...

Tech Supply Chain Tracker

Alibaba Group’s AI Power Move—Can It Outpace DeepSeek and OpenAI?

Alibaba Group Holding has made a significant move in the AI space with the release of its latest artificial intelligence model, QwQ-32B, as it...

Baptista Research

Alibaba (9988 HK): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts

Alibaba stock rally prompts closure of lower in-the-money calls, while higher out-of-the-money strikes gain popularity. Active trading expected in...

Gaudenz Schneider

Alibaba (9988 HK): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts

Alibaba's rally pushes put strikes deep out-of-the-money, creating opportunities in the 120-140 range for effective hedging.

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Alibaba (9988 HK): Top Trades - Strategies That Stand Out.

​Analysis of Alibaba's multi-leg option strategies on the HK Exchange shows traders taking calculated bets with long volatility strategies,...

Gaudenz Schneider

Tech Supply Chain Tracker (18-Mar-2025): Tesla strengthens ties with Baidu amid US-China tech tensions.

Weekly news roundup: Tesla strengthens ties with Baidu amid US-Sino tech tensions, China makes EUV breakthrough in semiconductors, lawmakers...

Tech Supply Chain Tracker

Alibaba Group’s AI Power Move—Can It Outpace DeepSeek and OpenAI?

Alibaba Group Holding has made a significant move in the AI space with the release of its latest artificial intelligence model, QwQ-32B, as it...

Baptista Research

Alibaba (9988 HK): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts

​Alibaba stock rally prompts closure of lower in-the-money calls, while higher out-of-the-money strikes gain popularity. Active trading expected in...

Gaudenz Schneider

Alibaba (9988 HK): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts

​Alibaba's rally pushes put strikes deep out-of-the-money, creating opportunities in the 120-140 range for effective hedging.

Gaudenz Schneider

Analysis of Alibaba's multi-leg option strategies on the HK Exchange shows traders taking calculated bets with long volatility strategies,...

Alibaba stock rally prompts closure of lower in-the-money calls, while higher out-of-the-money strikes gain popularity. Active trading expected in...

Alibaba's rally pushes put strikes deep out-of-the-money, creating opportunities in the 120-140 range for effective hedging.