BABA Jumps Nearly 13% as Aug-29-25 135 Call Sees Unprecedented 48,995 Contracts Traded
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Option Volume Hits 5.8% of Total—What's Behind This Surge?
Alibaba's (BABA) shares leapt 12.95% today, soaring $15.48 to $135.05. While that’s an attention-grabber, the real story unfolded in the options market. The most actively traded contract—the Aug-29-25 135 call—saw 48,995 contracts exchanged by 2:56 PM ET, representing a massive 5.8% of total option volume for BABA today. This surge in call volume points to an unusual appetite for upside exposure as BABA rallies to its highest levels in weeks.
High-Stakes Day Trading: Prices Swung from $0.05 to $1.90 in One Session
Today’s option action centered around the zero days-to-expiration (0 DTE) Aug-29-25 135 call, expiring at the end of the session. The price of this contract started at $0.27 and traded as low as $0.05 before reaching an intraday high of $1.90—a wild swing that provided both big risks and big opportunities for short-term traders. The volume-weighted average price (VWAP) was $0.65, while the last trade settled at $0.62, just pennies below the VWAP.
| Option Contract | Strike Price | Volume | High Price | Low Price | VWAP | Last Price | Stock Price |
|---|---|---|---|---|---|---|---|
| Aug-29-25 135 Call | $135 | 48,995 | $1.90 | $0.05 | $0.65 | $0.62 | $135.05 |
Order Flow Leans Bearish Despite Price Spike: 61.6% Sold vs. 37.8% Bought
Even as BABA ripped higher, a majority of today’s call option activity on this strike skewed toward selling—61.6% of contracts were sold versus just 37.8% bought. This could suggest that some traders were locking in profits or hedging into strength, perhaps betting on the rally running out of steam as expiration approached. What’s notable: institutional and large traders accounted for 51% of trades, almost evenly split with retail investors (49%).
Open Interest Update: Large Buildup Prior to Today, but Post-Session Data Needed
Heading into today, open interest for this contract stood at 10,053, a jump of 2,125 contracts from the previous session. Since open interest is only updated after settlement, we won’t know until tomorrow how much of today’s wild volume represented new bullish bets versus positions being closed. For now, the substantial overnight build hints at increased conviction leading up to the rally.
| Open Interest (Aug 28, 2025 7:00 AM) | Change from Prior Day | Interpretation |
|---|---|---|
| 10,053 | +2,125 | Substantial pre-session buildup |
Price Action and Range: Strike Was at the Money for Most of Session
With BABA stock trading between $128.51 and $136.65 today, the 135 strike spent much of the day "at the money," finishing just above the strike at $135.05. That made the contract particularly sensitive to late-session moves—a reason for the feverish volume and price swings seen throughout the day.
Key Takeaway: Cautious Bullishness Amid Profit-Taking
In summary, while today's historic volume on the Aug-29-25 135 call suggests traders were jockeying for short-term gains amid a sharp rally, the order flow and high level of selling indicate some skepticism about further upside in the immediate term. With institutions almost evenly matched against retail traders, and open interest climbing heading into the session, this strike could remain a focal point in tomorrow’s open—especially if BABA’s price momentum persists.
For traders and investors alike, today's action offers a textbook example of how option markets can both amplify and hedge underlying stock moves, all within a single, high-volatility session. Watching how open interest changes overnight may provide valuable clues on whether today’s burst of optimism leads to lasting upside—or quick reversals.
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