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Alibaba Stock Today: Sell This Call Spread, Earn $75 Immediately

Alibaba Stock Today: Sell This Call Spread, Earn $75 Immediately

Alibaba broke back below the 50-day moving average on Friday and continues to show deterioration in relative strength. A bear call spread involves selling an out-of-the-money call and buying a further out-of-the-money call. A June 21-expiring bear call spread on BABA stock using the 80 to 85 strike prices could get sold for around $0.75 per set of contracts, based on recent action.