Friday, May 6, 2016

Iron Condor - AAPL

Initiated a new iron condor position for AAPL (93.10).

SOLD -1 IRON CONDOR AAPL 100 19 AUG 16 110/115/90/85 CALL/PUT @1.96

Max Gain - 196
Max Loss - 304

Adopted a slightly bullish stance for this position.

Iron Condor - BABA

Alibaba (BABA) released its quarterly result on 5 May 2016 before market open.

Alibaba reported revenue of $3.75 billion for its fiscal Q4 ended March 31, beating the Wall Street consensus of $3.58 billion. Sales rose 39% in local currency year over year, the company’s highest growth rate in the past four quarters.

Earnings per share minus items rose 88% to 33 cents, but that was far below the consensus of 55 cents. Costs associated with new businesses initiatives and rising logistics and order-fulfillment costs weighed on the company.

Alibaba reported gross merchandise volume (GMV) of $115 billion, slightly edging the consensus of $112 billion and up 24% year over year. Transactions through mobile devices accounted for 73% of GMV volume.

The company reported annual active buyers of 423 million, up 16 million from the prior quarter and up 21% year over year. Monthly mobile active users reached 410 million, an increase of 17 million from the prior quarter and up 42% year over year.


Initiated a new iron condor position for BABA (79.10)

SOLD -1 IRON CONDOR BABA 100 20 JAN 17 95/100/65/60 CALL/PUT @1.76

Max Gain = 176 (As long as the BABA stock price stays between 65 and 95 at maturity on 20/01/17)
Max Loss = 324

Adopted a neutral stance for this position.