March 6, 2015  Trade Alert -  BABA Black Sheep  Portfolio

We can get another long side out to July and also move to a lower strike and still be quite positive net delta:

 

BTC 1 BABA MAR2 15 90 call (BABA150313C90)
STC 1 BABA Apr-15 87.5 call (BABA150417C87.5) for a credit of $2.37  (selling a diagonal)

BTC 1 BABA Mar-15 90 call (BABA150320C90)
STO 1 BABA Mar4-15 87.5 call (BABA150327C87.5) for a credit of $1.05  (selling a diagonal)

BTO 1 BABA Jul-15 85 call (BABA150717C85)
STO 1 BABA Apr1-15 85 call (BABA150402C85) for a debit of $3.50  (buying a calendar)

Be prepared to change these price limits by $.05 or more in order to get an execution.  .

 
Happy trading.

 

Terry