I want to break down a critical lesson in options trading — why it’s so important to sell at the open after a major catalyst, like earnings or an analyst upgrade. Too many traders get caught up chasing the hype when they should be doing the opposite.
That’s exactly what we capitalized on with Alibaba (BABA) this morning.
We played a $135/$140 bull call spread — a simple vertical spread where you buy the 135 call while selling the 140 on the same expiration date — and when BABA popped at the open, we sold into strength.
Why?
Because right after an earnings event, implied volatility collapses, which can crush option values. And sure enough, BABA faded almost $10 off its highs, proving why locking in profits early is the smart move.
Here’s what we covered in today’s video:
📈 Why We Sold Alibaba at the Open.
💰 FOMO Buyers vs. Smart Sellers.
📉 Implied Volatility Collapse.
🔍 Next Trade Opportunities.
We nailed Microsoft, Lam Research, and Alibaba this week — 170%, 50%, and 49% gains! If you’re not in yet, now’s the time to check out Warped Options.
The team at Lance Ippolito Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Kane and Lance Ippolito Are Locking Horns LIVE
Kane wants to prove to Lance that even when the market makes ZERO move…
Anyone can still target next-day payouts. And they’ll do it LIVE at 1 p.m. ET today, Feb. 21!
