I don't really trust P/L projections above, they don't account for fast iv drop post-ER, which will likely be 15-20%. So, calls will be worth less than projected. The iv spread between the two calls will be the same, so the price differential between the two calls will be the same, as well, as a percentage - but the value of the calls will decrease, so the max profit will be less, and the b/e points will be further out.
Another way to play BABA ER might be through YHOO. YHOO IVR at bottom of its range. YHOO especially vulnerable to the downside & will fall if BABA were to tank on the ER 11/4. So I might play a BABA ER fail thru its proxy, YHOO.....
Another way to play BABA ER might be through YHOO. YHOO IVR at bottom of its range. YHOO especially vulnerable to the downside & will fall if BABA were to tank on the ER 11/4. So I might play a BABA ER fail thru its proxy, YHOO.....
"If The Fool persists in his Folly he will become wise." - William Blake