BABA Call Spread Sees $121K+ Wager—Trade Gains 7% as Stock Surges 4.89%
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Large BABA Call Spread Posts 7% Gain on Strong Stock Move
A major call spread in Alibaba (BABA) options traded on Nov 24, 2025, drawing attention thanks to its notable size and early profitability. With BABA rallying 4.89% on the day, this call spread has already delivered a 7% mark-to-market gain for its buyers, prompting closer examination of what may be behind the move.
Trade Structure: $121K Outlay Targets Up to $422K in Profit
The option trade involved buying the 165/175 strike call spread expiring November 28, 2025, just four days out. Here are the trade specifics:
| Detail | Value |
|---|---|
| Trade Time | Nov 24, 2025, 09:37:43 |
| Expiration | 28-Nov-25 |
| Call Spread Strikes | 165-175 |
| Number of Contracts | 1,086 |
| Days to Expiration | 4 |
| VWAP Trade Price | 2.22 |
| VWAP Bid Price | 2.14 |
| VWAP Ask Price | 2.32 |
| Stock Reference Price (Time of Trade) | 159.57 |
| VWAP at 10:55:00 | 2.38 |
| Stock Price (Current) | 160.41 |
This means the buyer put up $121,092 (2.22 x 100 x 1,086 contracts), aiming for a potential payout near $422,000 if BABA ends above $175 at expiration. The position gained roughly $16,290 in just over an hour as the spread value increased by 0.15 (+7%)—reflecting BABA’s quick $0.84 jump.
To explore more call spreads and multi-leg trades on BABA or other stocks, check out the Multi-Leg Option Trades Screener. For this specific trade, here’s the multi-leg trade analyzer.
Risk-Reward Profile: Profits Only if BABA Clears $175
The buyer paid a 2.22 premium, and will profit only if BABA is above 167.22 at expiration, with maximum profit realized above $175. Anything below 165 and the premium is lost—so this is a directional bet with a limited window. With 1,086 contracts, it’s a sizable wager for a 4-day move, highlighting conviction—or possibly hedging—ahead of catalysts.
Technical Indicators Lean Bearish Despite Recent Outperformance
Though BABA has soared 87.7% in the past year—outpacing the SPY ETF by a wide margin—current moving average signals flash a caution flag. The price sits below both its 20-day and 50-day averages, indicating short-term technical weakness, while the 20- and 50-day averages have a bearish crossover. Yet, the current price is well above its 250-day average, reflecting robust long-term momentum.
BABA’s Price Action Relative to Key Moving Averages:
| Indicator | Value |
|---|---|
| Stock Price | 160.41 |
| 20-Day Avg | 164.60 |
| 50-Day Avg | 168.73 |
| 250-Day Avg | 125.18 |
| % Chg vs 20-Day | -2.6% |
| % Chg vs 50-Day | -4.9% |
| % Chg vs 250-Day | +28.1% |
| 20 vs 50-Day | -2.5% |
| 20 vs 250-Day | +31.5% |
| 50 vs 250-Day | +34.8% |
| Moving Avg Signal | Bearish Crossover |
Short-Term Skew Remains Slightly Bearish
Option skew, a measure of how options prices imply future direction, signals only a modestly bearish outlook for BABA in the next month. The proprietary 30-day implied volatility skew indicator sits at 45% (out of 100% for the most bullish posture), hinting that traders see a small tilt toward downside risk—or perhaps reflecting uncertainty from recent headlines and ongoing legal risk.
Performance Table: BABA Versus SPY Across Timeframes
| Duration | BABA Return | Low | High | SPY Return |
|---|---|---|---|---|
| Today | +4.9% | 158.70 | 161.49 | +1.2% |
| 2 Week | -3.6% | 148.64 | 168.00 | -0.6% |
| 1 Month | -3.8% | 148.64 | 182.50 | -0.7% |
| 3 Month | +35.8% | 117.60 | 192.67 | +5.2% |
| 6 Month | +30.0% | 103.71 | 192.67 | +15.0% |
| 1 Year | +87.7% | 80.06 | 192.67 | +13.5% |
| YTD | +89.5% | 80.06 | 192.67 | +14.7% |
| 3 Year | +109.3% | 66.63 | 192.67 | +74.3% |
| 5 Year | -40.5% | 58.01 | 280.61 | +96.8% |
Recent Headlines May Be Driving Both Volatility and Strategic Trades
Beyond the technicals, the current call spread activity may be partly influenced by news flow: BABA faces a legal investigation after reports surfaced accusing Alibaba of aiding the Chinese military—a story that led to a sharp drop in shares after publication. This uncertainty could prompt both hedging and speculative option positioning as expiration nears.
Key Takeaways: Watching BABA’s Next Move After the $121K Bet
This high-stakes call spread offers a tight risk/reward profile, betting BABA can overcome a modest technical drag and headline risk to surge above $175 by expiration. Technicals hint at a short-term struggle, even as the stock has posted long-term outperformance. For investors watching options signals or trading multi-leg strategies, BABA is one to keep on the radar as volatility remains high.
For further research into BABA option strategies or to screen for similar trades, visit the Multi-Leg Option Trades Screener.
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