Bulls bet big on these three China-related stock trades during Trump visit
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- Alibaba, 5 daysAbout five times more calls traded than puts in Alibaba, with more than 75,000 calls bought compared to under 12,000 puts bought, according to ThinkOrSwim data.
- Ford, 5-dayOptions in Ford skewed heavily bullish, with more than five times as many calls trading as puts and more than twice as many calls bought as sold.
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President Donald Trump and a cavalcade of American business leaders landed in Beijing Wednesday for talks with Chinese leader Xi Jinping, and market bulls are following.Chinese stocks, ETFs and related themes posted some of the biggest rallies in months. Shares of e-commerce giant Alibaba surged 8% despite reporting earnings in the morning that missed most expectations, leading a 2.5% rally in the iShares China Large-Cap ETF (FXI).
Alibaba, 5 daysAbout five times more calls traded than puts in Alibaba, with more than 75,000 calls bought compared to under 12,000 puts bought, according to ThinkOrSwim data. Among the $160 million traded in options premium as of midday Wednesday, 88% was in calls, according to SpotGamma.China-centric ETFs were even busier. The KraneShares China Internet ETF was a top-10 traded security by options volume for most of the day, with more than 750,000 contracts traded and almost all the premium – $48 million of $50 million – in calls. Nine of the top 10 trades by dollar amount were call purchases and the most popular contract by volume was the 32-strike call expiring Friday.