Selling our BABA call contracts.
Over the weekend, Chinese President Xi caused a major stir by removing his predecessor from the Party Congress.Xi has solidified his power over the country by packing the congress with loyalists.
Investors and political strategists are now worried about China’s zero covid policy being extended, heightened international tensions, and possibly an accelerated timeline for China’s takeover of Taiwan.
All of this is troubling for Chinese stocks that trade on international markets.Today, shares of BABA are sharply lower following the weekend’s drama.
We’ll go ahead and sell our call contracts while there is still some value left for us to recoup.
Fortunately, many of our other positions are trading well, helping to offset losses from BABA. That’s why diversification is important — even with a speculative trading program.