BABA Jumps Nearly 10% as Sep-26-25 $180 Call Option Volume Surges to 30,468—What’s Behind the Massive Bet?
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Sep-26-25 $180 Call Accounts for 11.4% of All Options Volume—A Major Standout
Alibaba Group (BABA) saw its stock soar to $179.33, a sharp increase of 9.96%—up $16.25 on the day as of 11:07 AM. But the spotlight isn’t just on the shares. The Sep-26-25 $180 call option became the epicenter of action, with 30,468 contracts traded so far, making up a striking 11.4% of all BABA options activity today.
| Option Contract | Volume | % of Total Volume | VWAP Price ($) | Implied Volatility (Last) | % of Large Trades |
|---|---|---|---|---|---|
| Sep-26-25 180 Call | 30,468 | 11.4% | 2.75 | 49.3% | 57% |
Technical Indicators Turn Bullish Amid Volatility Drop
The most heavily traded $180 call contract wasn’t just popular—it saw wide price movement. The day’s trading range for this option spanned from $1.85 up to $3.90, with the last trade executed at $3.35. Its volume-weighted average price (VWAP) came in at $2.75—massively higher than yesterday’s closing price of $0.18.
Implied volatility (IV) told an intriguing story: after opening at 44.4%, IV climbed as high as 57.9% before settling at 49.3%, which still represents a 5.2% decrease from the previous day’s close of 52.3%. Typically, declining IV while prices and volume spike hints at option sellers entering aggressively or the market viewing today’s surge as a relief rather than the start of a runaway rally.
| Open | High | Low | Last Price | Prev Close |
|---|---|---|---|---|
| 1.91 | 3.90 | 1.85 | 3.35 | 0.18 |
Order Flow Is Balanced, But Institutions Lead the Action
The split between buyers and sellers in this contract is almost even: 50.1% of contracts were bought and 49.9% sold. What stands out is that 57% of these trades are attributed to large or professional market participants, suggesting institutions or well-capitalized traders are taking the lead in this aggressive positioning. Retail activity accounts for 43% of the flow, highlighting strong, broad-based interest.
Open interest, which will update only after today’s session settles, stood at 6,372 as of the previous close—a decrease of 46 contracts. This leaves an open question as to whether today’s surge in activity reflects new positions being opened or existing ones being closed or rolled over. We’ll have to wait for tomorrow’s open interest data for clarity on the intent behind this extraordinary spike.
Big Bets, Falling IV—Are Bulls or Option Sellers Taking Control?
Today’s massive call volume, against the backdrop of a 9.96% surge in Alibaba’s share price, suggests the options market is primed for significant directional movement—or at least a big swing in sentiment. Yet the simultaneous drop in implied volatility hints that sellers, not just buyers, might be cashing in on the post-rally optimism, limiting the price premium on these contracts even as demand surges.
For traders watching BABA, the most critical questions are: Will today’s heavy call action fuel further upside, or is this a contrarian signal that the exuberance could fade as sellers pile in? While the presence of large institutional players tilts the scale toward bullish conviction, the options market’s volatility signals still warrant a careful, skeptical approach.
What to Watch Next—Is This Call Activity a Springboard for More Gains?
While it’s too early to declare victory for bulls or bears, today’s combination of surging call volume, aggressive institutional trades, and a sudden drop in volatility gives investors and traders plenty to think about. Keep an eye on tomorrow’s open interest numbers—if they rise sharply, it’s a sign new bullish bets are on. If they remain flat or drop, it could mean existing traders just closed out their gains after the run-up.
No matter how it plays out, BABA’s $180 call action has delivered a crystal-clear signal: there’s real conviction and possibly a major turning point in sentiment. Whether this proves to be a launchpad for new highs or a short-term burst, the data will reveal more in the coming sessions.
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