BABA251017P00150000 Option on Alibaba Group Holding

An 'In The Money' option is one with a strike price that the current stock price has already surpassed. Some options investors can hedge their Alibaba Group positions using in-the-money options. They may also want to buy options with some intrinsic value, not just time value. However, because in-the-money options on Alibaba Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Alibaba Group's Option Greeks for the contract ending on 2025-10-17 at a strike price of 150.0 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to Alibaba Group's option greeks, its implied volatility helps estimate the risk of Alibaba Group stock implied by the prices of the options on Alibaba Group's stock.

Put options written on Alibaba Group grant holders of the option the right to sell a specified amount of Alibaba Group at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Alibaba Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Alibaba Group is like buying insurance aginst Alibaba Group's downside shift.

By selling Alibaba Group's put option, the investors signal their bearish sentiment. A short position in a put option written on Alibaba Group will generally make money when the underlying price is above the strike price. Therefore Alibaba Group's put payoff at expiration depends on where the Alibaba Stock price is relative to the put option strike price. The breakeven price of 121.05 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to Alibaba Group's price. Finally, at the strike price of 150.0, the payoff chart is constant and positive.

Alibaba Group's option chain is a display of a range of information that helps investors for ways to trade options on Alibaba. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Alibaba. It also shows strike prices and maturity days for a Alibaba Group against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone.

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Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alibaba Group. If investors know Alibaba will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alibaba Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of Alibaba Group Holding is measured differently than its book value, which is the value of Alibaba that is recorded on the company's balance sheet. Investors also form their own opinion of Alibaba Group's value that differs from its market value or its book value, called intrinsic value, which is Alibaba Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alibaba Group's market value can be influenced by many factors that don't directly affect Alibaba Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Alibaba Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alibaba Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alibaba Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.