High Alibaba Activity among Options Traders

Oct. 29, 2014 - PRLog -- Alibaba Group Holding Ltd has become one of the most popularly traded stocks among Banc De Binary’s private investors following its IPO on 19 September 2014. The brokerage added BABA stock to the list of tradable assets on its binary options platform and has experienced exceptionally high demand in the first month.

Banc De Binary Founder, Oren Laurent, says “Alibaba became one of our most traded stocks overnight. It is well known that investor sentiment drives markets, and certainly the huge volume of media hype has been attracting traders to Alibaba. Our financial analysts have received a great number of questions about the new stock and have been sharing their research with clients on how to best trade the market volatility.”

The short-term volatility that has characterized Alibaba’s trading since the firm’s IPO is ideal for the trading of binary options, whereby traders can profit by simply predicting the direction in which an asset will move in a set time period. In volatile market conditions, traders can follow the live trends and open both call positions with a short term expiry time when the market is bullish and also put positions with a short-term expiry time when the market turns bearish.

Despite the current price fluctuations since the IPO, volatility is likely to reduce as time passes and trading patterns stabilize. Among traders who have opened positions with longer term expiry times, Banc De Binary notes a definite preference for call options.

Oren Laurent comments, “Consider Facebook for example: investors had doubts about mobile marketing in the wake of its IPO but in time the company proved its worth. Although Alibaba investors have expressed concerns about market competition, the fact remains that this is the biggest e-commerce company in China and boasts a proven business model. The potential for expansion locally and internationally is tremendous.”

Banc De Binary anticipates continued interest in Alibaba stock in the coming weeks. Traders should pay attention to the company’s first public earnings report on 3 November 2014 for insights into its current financial health and future prospects.

About Banc De Binary: Banc De Binary was founded in 2009 in the aftermath of the financial crisis, and has quickly become the global leader in binary options trading. It has more than 250,000 client accounts worldwide and offers trading on 200 stocks, currencies, commodities and indices.

Regulation: Banc De Binary is a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license no. 188/13 and is registered with such global regulatory authorities as the FSA, FSB and other EEA financial licensing bodies.