Should I Long BABA?

The current beta-weighted delta of my portfolio is currently minus 4. Want to balance it a bit. Thinking of a positive net delta trade. Came across BABA, thought it could be a good candidate to serve this purpose. Well a week or so, i did lose some money in an iron condor position involving BABA.

Rationale for a bull credit call spread:

Technically speaking, it looks like an uptrend to me.

Appears to be on an up-trend

I am considering a possible iron condor strategy with a positive net delta of 1.19 and P50 of 82%. Although BABA’s IV rank is below 30 (dropped – due to post recent earnings announcement), its IV is above 40% (of which I would still consider it to be OK to sell options). Hoping to fetch a credit preimum of at 1/3 of the width of the iron condor ~ >$1.33.

DISCLAIMER: THIS IS NOT AN INVESTMENT OR TRADING ADVICE OR ENDORSEMENT. PLEASE REFER TO THE GENERAL DISCLAIMER OF THIS BLOG. IF IN DOUBT – PLEASE CONSULT YOUR LICENSED FINANCIAL PLANNER OR ADVISER.

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