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The Best Options Trade for Alibaba (BABA) Earnings

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On Wednesday, November 2nd, Alibaba (BABA - Free Report) will release its second quarter earnings results before the bell. The company is a Zacks Rank 1 (Strong Buy), and have a Value, Growth, and Momentum score of F.

Dave will look at Alibaba’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Alibaba ahead of earnings.

Alibaba in Focus

Alibaba Group Holding Limited operates online and mobile marketplaces in retail and wholesale trade, as well as cloud computing and other services. It provides technology and services to enable consumers, merchants, and other participants to conduct commerce in its ecosystem. The Company operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online business-to-business marketplace; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. Alibaba Group Holding Limited is headquartered in Hangzhou, the People's Republic of China.

Alibaba is expected to report earnings at $0.47 per share according to the Zacks Consensus Estimate. Last quarter they beat earnings expectations by 36.84% at $0.52 per share, beating estimates of $0.38 a share.

ALIBABA GROUP Price, Consensus and EPS Surprise

ALIBABA GROUP Price, Consensus and EPS Surprise | ALIBABA GROUP Quote

Alibaba is trading around $101 a share, and their 52-week high is $109.87 per share. Their average EPS surprise is 36.84%.

Bottom Line

How should investors play Alibaba ahead of their earnings report? For insights on the best options trades, make sure you are subscribe to Live Trader to see Dave Bartosiak at 1:30 pm this afternoon.

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