© Reuters. Pete Najarian Delivers Profits on Alibaba Trade, But He Still Holds Those Names with China Exposure
Market Rebellion co-founder Pete Najaraian bought short Ali Baba (NYSE:) Group Holding Ltd (NYSE: BABA) bought options earlier this week. He sold those calls following a surge in Alibaba’s stock price.
“Those options went from $2 to $9,” Najarian said Thursday on CNBC’s “Fast Money Halftime Report.”
When the gains get so big, he’s disciplined enough to take profits, he said.
Yet Najarian still has exposure to China via call options on KraneShares CSI China Internet ETF (NYSE: KWEB) and IShares China Large-Cap ETF (NYSE: FXI).
“Most of the time I avoid ETFs when looking at options and the reason I say that is that they don’t give you what you pay for,” Najarian said.
He jumped into those calls after noticing unusual call buying volume in ETFs, he said.
“I still hold these ETFs,” Najarian said. “They take longer to move. They don’t give the kind of moves I want, especially now today on hindsight.”
See also: If Starbucks (NASDAQ:) Gets ‘Anywhere Near $80’, Pete Najarian Considers Rolling Out This Strategy
BABA, KWEB, FXI Price Action: At press time, Alibaba was down 5.25%, KraneShares CSI China Internet ETF was down 7.91%, and IShares China Large-Cap ETF was down 7.91% 4.1%.
Photo: Courtesy of Alibaba.
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