Shares of Alibaba Group Holding Ltd BABA have shed almost 9% since Thursday last week, amid wide speculations of the company facing further regulatory pressures, with Beijing preparing for another round of crackdowns.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that there were twice as many calls as puts on Tuesday.
There were buyers of 8,000 of the February 115 strike calls for an average price of $4.10 per contract, he added.
“Buyers might be betting that the stock is so bad that it’s good,” Khouw said. Markets are implying a move of about 9% in Alibaba’s stock by Friday, he added.
Related Link: Alibaba (BABA) Shares Under Pressure Again As Concerns Continue To Mount
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