Alibaba’s Rising Bear Options Show Traders Are Still Cautious

Alibaba’s Rising Bear Options Show Traders Are Still Cautious

Alibaba Group Holding Ltd.’s better-than-feared sales figures haven’t persuaded options traders that the worst is over for the stock.

The put-to-call ratio derived from open interest jumped to about 1.2 times on Friday, the highest in about 10 months, suggesting bearish views on the Chinese e-commerce giant are holding sway. Put options benefit investors when shares drop below a pre-determined level, acting as an insurance against losses.

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