BABA Iron Condor — Dec 18, 2026

BABA (Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share) presents a iron condor opportunity with very elevated implied volatility. IV Rank 74. IV 5059.0% trades 1246.0pp above 30-day HV (3813.0%). This setup favors net premium sellers.

Sell the $95 put and the $120 call (both ~15-30 delta), each protected by a long wing. The position profits if BABA closes between the breakevens at expiration. Underlying ~$109.45, 39 DTE. Max profit $269 per contract, max loss $731, 36.8% return on risk, 61% POP. Breakevens at $92.31 and $122.69.

Management: take profit at ~50% of max profit ($135). Cut at 2x credit ($538 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: BABA @ ~$109.45 Expiration: Dec 18, 2026 (39 DTE) Net credit (entry): ~$269.00 per spread Legs:

• Sell BABA Dec 18, 2026 $95 Put (delta -0.21, mid $2.04)
• Buy BABA Dec 18, 2026 $85 Put (delta -0.07, mid $0.55)
• Sell BABA Dec 18, 2026 $120 Call (delta 0.23, mid $2.02)
• Buy BABA Dec 18, 2026 $130 Call (delta 0.11, mid $0.82)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~5.2% of mid) before sending.

Take profit at 50% of max profit ($135). Cut loss if position reaches 2x credit received ($538 loss). Roll if tested with > 14 DTE remaining.