BABA Short Call — Sep 18, 2026

BABA (Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share) presents a short call opportunity with elevated implied volatility. IV Rank 67. IV 4103.0% trades 883.0pp above 30-day HV (3220.0%). This setup favors net premium sellers.

Sell the $150 call for $1.77 credit. Naked single-leg exposure; collect premium from time decay if BABA stays below the strike. Underlying ~$122.25, 49 DTE. Max profit $177 per contract, max loss $30000, 0.6% return on risk, 85% POP. Breakeven at $151.77.

Management: take profit at ~50% of max profit ($89). Cut at 2x credit ($354 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 @ ~$122.25 Expiration: Sep 18, 2026 (49 DTE) Net credit (entry): ~$177.00 per spread Legs:

• Sell BABA Sep 18, 2026 $150 Call (delta 0.15, mid $1.77)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~5.7% of mid) before sending.

Take profit at 50% of max profit ($89). Cut loss if position reaches 2x credit received ($354 loss). Roll if tested with > 14 DTE remaining.