Alibaba Options Traders Bet On Stock Surging This Much By September Expiration

Alibaba Group Holding Limited BABA shares dropped on Thursday following the release of fourth-quarter financial results.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Alibaba was one of the 10 busiest single stock options on Thursday, with 3.6x more calls than puts on the stock.

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There was a buyer of 4,000 of the September 95-calls at an average price of $6 per contract, Khouw mentioned.

The trader expects Alibaba’s stock surging at least 17% by September expiration.

Alibaba reported fourth-quarter FY22 revenue growth of 2% year-on-year to $30.32 billion. Non-GAAP earnings per ADS of $1.56 beat the consensus of $1.35.

BABA Price Action: Alibaba shares fell 5.4% to close at $85.77 on Thursday, and lost 1.7% in today’s pre-market trading session.

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