Alibaba closed at $107.45, down 0.08% from the previous close.

Large options trades in Alibaba presented a mixed but overall cautiously bullish picture. The biggest displayed complex order was a bull put spread that collected a net credit, while a bear call spread opened for a net debit, suggesting traders are balancing upside participation with downside protection. Volume data supports a bullish lean, with calls outpacing puts by a wide margin, yet the presence of a defensive call spread indicates investors are not positioned for an unchecked rally.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

Alibaba’s implied volatility is 42.39%, and with an IV percentile of 23.90%, current option volatility sits on the lower side of its recent range, indicating that options are cheaply priced rather than expensive. At the same time, the IV/HV ratio of 1.45 shows implied volatility remains above historical realized volatility, suggesting the options market is still embedding a moderate forward-looking premium despite the relatively low percentile backdrop.

The Call/Put volume ratio is 2.44.

Large Trades

A bull put spread collecting a net credit of $83,700 was the largest displayed complex trade, signaling a moderately bullish stance. The position involved selling 1,288 contracts of the October 2, 2026 $115.00 put and buying 1,288 contracts of the October 2, 2026 $114.00 put, with both strikes in the money versus the $107.335 reference share price. As a same-expiration put spread, this is a premium-collection structure, and the reported size should be read from the net credit rather than the gross leg values. Strategically, the trader appears to be expressing confidence that BABA can hold up well enough over time to make the short put exposure attractive while using the lower-strike long put as defined downside protection.

A bear call spread opened for a net debit of $584,700 was the second displayed large trade and points to a bearish-to-cautious view on upside. The structure bought 3,460 contracts of the November 20, 2026 $125.00 call and sold 3,460 contracts of the October 16, 2026 $125.00 call, with both legs out of the money relative to the current stock price. Using the preprocessed classification, this is a spread strategy sized by its net debit, not by the individual leg totals. The positioning suggests a defensive or directional call spread expression that limits near-term upside expectations while retaining longer-dated upside optionality, consistent with a hedged bearish stance rather than an outright aggressive downside bet.

Overall, the bulk-order flow leans bullish on balance. While the displayed trades were mixed, the dominant tone from the broader large-trade figures favors upside, with bullish positioning outweighing bearish activity and including an additional call purchase in the full tape. Taken together, the order flow suggests investors are generally constructive on BABA, but still selective and risk-defined in how they express that view, indicating cautious optimism rather than unchecked bullish conviction.

Strategy Reference

For a low assignment probability on the put side, a seller could consider the October 2, 2026 $90.00 put, which sits well below current support and aligns with the bullish put spread sentiment while keeping margin requirements modest.