Alibaba, PDD, Bilibili Options Trading Chases Soaring Chinese Stock Prices
After eight sessions of growth, Chinese stocks listed in the U.S. found themselves in the top equities ranked by options volume Wednesday. $Alibaba (BABA.US)$ has been within the top 10-20 options stocks all week, up 26% since the first round of Chinese government stimulus was announced. Wednesday, it was in the number 8 spot, at 522k contracts trading, compared to about 46M regular shares trading about $5.33B in capital.
It was not alone at the top. $PDD Holdings (PDD.US)$ was the tenth highest traded stock in terms of options contracts, with about 502k contracts changing hands Wednesday. The stock climbed 48% in about seven days.
One contract stood out for Alibaba, a $120 call expiring Friday that enables users the right to buy BABA for a price for 90C/share for 100 shares. The price of the contract has not changed much Wednesday but jumped in trading 170% Tuesday.
Even $Bilibili (BILI.US)$ made it to the top 27 spot on the market with 164k options contracts. The live streaming stock has been leading the highest-reaching industry list on moomoo for days, up 83% in seven sessions. Two contracts stood out for BILI: the $30 and $25 October 16 expiration calls both saw 33k and 39k in open interest, despite a fraction of the trading volume.
Chinese stocks climbed at record paces after China's central bank directed commercial banks Sunday to lower mortgage rates for existing home loans by at least 30 basis points before Oct. 31. The People's Bank of China also lowered the reserve requirement ratio for banks and cut the interest rates last week.
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Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office.
Fmr CNBC contributor, reporter/investor/trader
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