Saxo Group Videos

Peter has always been bullish on Alibaba but explains why he now sees USD 85.00 as a crucial level: "The best way to play Alibaba given its high relative valuation and the share price balancing on a knife's edge just above that likely-to-be crucial level at $85, is through call options (so the downside risk is limited). Our preferred trade is to buy the March C87.5 at $2.46, which is a 2.8% premium to yesterday's close, as this option is in the money above $90 (the potential breakout level on the upside), and has the loss capped down to the $85 level which again is the potential downside risk level."