Poor man covered call, PMCC on BABA, 09988.HK

[beta]

BABA seems to be the lowest point in recent crisis.
Let's use the so called poor man covered call on BABS listed in HK exchange.
The longest expiry date for BABA 09988.hk is June 2022.
Today 25 Aug 2021: the stock quote of 09988.hk is HK$165
160 Call June 2022 quote: HK$25
Multiplier: 500 per contract
Buy to open 1 option contract 160 Call June 2022: HK$27.56
Sell to open 1 option contract 180 Call Sept 2021: HK$3.76
Debt: (27.56-3.76)x500 = - HK$11900

 

[alpha]

Thanks for you option strategy suggestion for Alibaba. I also proposed another option strategy for it. Please refer to Iron Condor on Alibaba

Iron condor on Alibaba Stock potentially yield 41%

The implied volatility of BABA has gone through the roof recently. The existing level of 43% is one of the highest readings in the last 12 months. When the bad news was digested, the IV might drop while prices stabilize could look at an iron condor trade for Alibaba stock. It's the best time to...

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