Nov 22, the third week Friday when options expire. As we discussed 2 weeks ago, the chance for losing money was high for the guy who bet huge on Alibaba (BABA) with options. Unfortunately this guy indeed would lose big money if he/she still held the options till expiration. BABA closed at $111 on Friday. Per my calculation, each dollar would mean a $300,000 loss. So this guy could have lost $2.7 million in a short few weeks. This guy went in for a max $2.4 million gain but ended up with $2.7 million loss. Ouch!
Again, don't play fire with options if you don't know how to control your risks! It can bankrupt you!!!
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