Alibaba closed at $110.78, down 0.53%.

The session’s largest options prints revealed a notably cautious institutional posture. A $911,700.00 out-of-the-money call sale dominated block activity, signaling a willingness to cap upside rather than chase a breakout. This bearish-leaning flow overshadowed a separate $329,600.00 bullish call purchase, leaving the overall tone tilted toward limited upside expectations for Alibaba.

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Options Indicators

Alibaba’s implied volatility stands at 42.42%, while its IV percentile is 25.50%, which places current option pricing in the lower end of its historical range. In other words, volatility is relatively subdued and options appear cheaply priced rather than expensive, even though the IV/HV ratio of 1.10 suggests implied volatility is only modestly above realized volatility. Overall, the options market is reflecting fairly restrained premium levels.

The Call/Put volume ratio is 2.10.

Large Trades

A CALL sale worth $911,700.00 was the largest highlighted block, with 1,750 contracts of the March 19, 2027 $135.00 call sold at a trade-over-open-interest ratio of 5.21. With the stock reference price at $110.42, this strike was out of the money at execution, making it a bearish to capped-bullish positioning that leans toward premium collection rather than an aggressive upside bet. Selling an OTM call at this strike suggests the trader was comfortable fading a sharp rally above $135.00 into expiration, or was willing to monetize elevated upside premium while expressing a restrained outlook on BABA’s medium-term upside.

A CALL purchase worth $329,600.00 was the other displayed large trade, consisting of 3,200 contracts of the October 23, 2026 $115.00 call bought at a trade-over-open-interest ratio of 1.03. Because the strike sat above the $110.42 reference price, this was also an out-of-the-money call, and it reflects a straightforward bullish directional bet on BABA moving higher before expiration. As a single-leg upside purchase, the position points to a trader seeking leveraged participation in a moderate advance through $115.00, likely anticipating improving sentiment or a catalyst strong enough to push the shares above the strike with enough speed to overcome time decay.

Overall, the large-trade flow leans bearish. Although there was a notable bullish OTM call purchase, the larger trade was an OTM call sale, and that premium-selling posture carried greater weight in the block activity. Taken together, the figures suggest institutions were more inclined to cap upside expectations than to chase a breakout, indicating cautious to negative sentiment on BABA rather than conviction in a sustained rally.

Strategy Reference

For a low assignment probability, a seller could consider the $135.00 strike for shorter-dated calls, or use a bear call spread such as selling the $135.00 call and buying a higher call to reduce margin while still expressing a capped-upside view.