Fallen: 8% Consider buying after: 15%
I was a big fan of Alibaba before its recent price-spike. You may remember that it was less than a month ago that I bought BABA call options, and shared the trade with my readers. I’m not going to dwell on this, but if you followed me on that trade, you are probably trading stock today from Costa Rica (as I am) or some other tropical paradise. I don’t necessarily recommend waiting until BABA shares fall back to their pre-spike level before buying them, as they may never do so, but given the two-steps-forward-one-step-back pattern of this stock, I think you’ll very likely be able to grab it at $130 or below.
Chart courtesy of www.stockcharts.com