$BABA #BABA Opportunity or Trap?
BABA #BABA This one I got stuck in the trade, but I am not worry too much about it, over the longer term it will go higher, technical wise, we dropped and hit the support levels. If you take a look at the charts, it hit the weekly 100MA and bounce off it. Also a previous resistance area that now is support. If you have a longer term outlook, this could be a buying opportunity. If you remember AMZN, FB, GOOG all had these anti trust problems then moved much higher later on.
Though there is a risk being this is a Chinese stock and not know what the government can do. I took half my holds off before this drop for a small lost and I kept half my leaps around with some short calls to pay down the cost. I'll just keep selling calls to pay down the leaps and possibly sell some put credit spreads to speed up the process. I wait till it find a bottom and will add to it.
BABA is still one of the largest business in the world and still have huge growth ahead of it. It's moat is very wide, they got their hands on every business in China. They have monthly active users of 846 million people! Compare to Amazon 200 million. So longer term they are still a great company to buy. Your risk is mostly political and geographical because it's base in China.
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