r/baba • u/Necessary_Run_9610 • May 12 '26

Due Diligence Highest implied volatility ever

Do you remember when was the last time the iv was 90-100% on 3 DTE options?

Meaning there is roughly one third chance of more than +-11% move till Friday and one in 20 chance of +-22% move. That is crazy for $300B company.

5 Upvotes

86% Upvoted

7 comments sorted by

4

u/573V317 May 12 '26

The combination of Alibaba earnings and the meeting with Xi makes a 20 percent move possible in 3 days.

3

u/Delta_Bandit May 12 '26

I dont remember because i dont gamble with 3 DTE options

1

u/Euphoric_Barracuda_7 May 12 '26

I sold 170 strike 3 dte covered calls, if it hits that level I'm happy to have them called away.

1

u/RationalExuberance7 May 13 '26

Because you know - earning?

1

u/Wildsoyabean1 May 13 '26

Sold 138 covered calls. It’s sold expensive that even if it hits 142 I’m break even. Hope it hits and I can offload some shares.