11/6/2017 stock option idea

Alibaba: BABA

• long call spread Jan Monthly 185~195 with $4.6 (yesterday's close), any price between $4.5~$4.6 is acceptable 
• The potential gain is $10-$4.6/$4.6 =  117% if price close above $195 when option expire
• The potential loss is 100% if price close below $185 when option expire
• break even price: 189.6 
• why choose $195?
• the projection price of BaBa for Jan is around $195~200.

Update on Facebook, Apple and Celgene option tade

FB: long call spread Dec Monthly 165~170 now at $4.33, any entry with $3.35 or less already has around 30% gain, the recommendation is keep the option spread to run, let more time value to decay. I will notice to close the position, otherwise let the spread run through expiration date.

Apple: long Nov 145~150 call spread now at $4.98(almost full $5 credit), any entry within $3.8 will get 31.8% gain. Recommendation is let the option spread be. There is very very slim chance, apple stock price will swing below $150 at expiration date (if you close it, you will lose penny, no big deal) 

Celgene: long Dec 125~135 call spread now almost be worthless, I assume this is a bad trade unless some miracles happen.


Note: my personal opinion is not for investment, but for education and illustration.