Just yesterday, I recommended that you exit the BABA January 82.50 put side of the hedge, and hold the BABA January 90 calls because the stock is now beginning to launch. I also recommended a buy on the BABA April 105 calls yesterday.
Today, on a $3.40 run in the underlying stock, the BABA January 90 call now trades at $11.00 x $11.30, as of 12:25 pm EST. That gives us a gain of 104%. Consider exiting just half of the call trade now to secure the gain. I simply want to protect some gains here in case of a short-lived, near-term reversal.
Hold the second half of those January 90 calls, and all of the April 105 calls.
Stay tuned for many more opportunities to trade BABA. My goal is to make you a lot of money with this trade. I strongly believe we’re looking at the next $1,000-Google-type runner here. If all goes according to plan, this could be a $180 stock by the end of next year. And I plan to have you in and out of very profitable opportunities along the way.