Alibaba’s Rising Bear Options Show Traders Are Still Cautious
- Stock’s put-to-call ratio is at the highest in about 10 months
- Analysts see earnings upside, but warn about macro risks
The mascot for Alibaba Group Holding Ltd.'s Taobao e-commerce platform at the company's affiliated hotel in Hangzhou, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Alibaba Group Holding Ltd.’s better-than-feared sales figures haven’t persuaded options traders that the worst is over for the stock.
The put-to-call ratio derived from open interest jumped to about 1.2 times on Friday, the highest in about 10 months, suggesting bearish views on the Chinese e-commerce giant are holding sway. Put options benefit investors when shares drop below a pre-determined level, acting as an insurance against losses.