On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Alibaba Group Holding (NYSE:BABA) traded more than five times its average daily volume on Wednesday. Over a million contracts were traded, he added.
Check out other tech stocks making big moves in the premarket.
There was a buyer of 4,575 of the January 150 calls at $6.70 per contract on average, Khouw mentioned. “That’s risking a little over $3 million in premium on a bullish bet that Alibaba’s run is far from over,” he stated.
The trade sees shares of Alibaba climbing at least 30% by January expiration, Khouw added.
BABA Price Action: Shares of Alibaba jumped 14.67% to settle at $119.62 on Wednesday.
