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Anatomy of a Trade

Trading Around Alibaba

Anatomy of a Trade

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

We often trade an underlying multiple times with varying results.

In this episode we see two trades, one before earnings and one after with varying results on Alibaba. In the end, it’s all about the management, as we’re able to close a winner and take a large loser to a small scratch.

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