$NVIDIA(NVDA)$
The $NVDA 20250221 140.0 CALL$ traded 187,000 contracts on Wednesday, but it doesn’t appear on the open interest ranking. It seems the range for this week is locked between 135–140, with little volatility expected. Selling calls and puts outside this range is a viable strategy.
Other new positions are unremarkable, as the focus remains on locking in the price range.
$Tesla Motors(TSLA)$
Tesla’s trend is very similar to NVIDIA’s. It rose to 360 on Wednesday, but the tug-of-war between calls and puts suggests the stock will likely end the week sideways. The 360 call saw a trading volume of 100,000 contracts but had an open interest change of -4,769. Meanwhile, the 360 put traded 87,000 contracts, with an open interest increase of 2,289. Tesla is expected to close on Friday between 350–370.
$KraneShares CSI China Internet ETF(KWEB)$
Although Alibaba released its earnings before the market opened today, surging 10% and lifting $KWEB$ along with it, the new option positions show that bearish traders are still exerting pressure.
On Wednesday, there was a large institutional order for a total of 40,000 contracts, forming a bear put spread. Either side could be the seller, and both interpretations are reasonable:
If the 32 put is the seller, the expected pullback range is 32–35.
If the 32 put is the buyer, it suggests a near-term pullback with a longer-term expectation above 35.
In either case, 32 can be considered the lower limit for the pullback:
$iShares China Large-Cap ETF(FXI)$
The expected range before the end of the month is 33–38.
$Alibaba(BABA)$
Looking at Wednesday’s $BABA$ option activity, a previously overlooked large order stands out.
Closed $BABA 20251219 115.0 CALL$
Rolled to $BABA 20251219 150.0 CALL$
The transaction amounts were $21.12M and $13.40M, respectively.
The original $BABA 20251219 115.0 CALL$ was opened as a large order on January 28 (Chinese New Year’s Eve) at a price of 6.34 per contract. On February 11, 400 contracts were closed at a price of 18.55. On Wednesday, 8,000 contracts were rolled at a price of 26.40.
Sharing this so I’m not the only one who missed out on millions.
150 is roughly the expected top for this rally. The next move is hard to predict. Today is Thursday, and Alibaba didn’t see much bullish positioning earlier this week. Let’s see if there’s a short squeeze on Friday.
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