AI's take on selling PUT option for 09988 (Alibaba)
Analysis of Selling Put Options on Alibaba (09988) (as of March 3, 2025): Current Price: HKD 129.1 Key Metrics:- Implied Volatility (IV) : 55.64% (elevated, ideal for premium sellers). Short Volume Ratio: >1,400% (extreme bearish bets; upside risk if short squeeze occurs). Support Level: HKD 122.35 (5.2% below current price). Analyst Sentiment: 15 Buy, 1 Hold (bullish consensus). Put Options Snapshot (March 14 Expiry) Advantages: - High IV drives premium yields. - Strong institutional inflows (+HKD 1.18B on Feb 26). - Liquidity in near-term expiries (e.g., March 14). Risk: Short-term resistance at HKD 133.25; failure to hold above HKD 127.5 could trigger assignment. Recommendation:- Sell Alibaba (09988) March 14 HKD 130 Put : Premium: HKD 5.58 per share. Breakeven: HKD 124.42 (HKD 130 -