I've been doing litigation for over 20 years. The first rule for litigators is it's all gray. This means if there is big money involved, then if you can make a decent argument the law has been violated, you file a lawsuit. The two firms did that quickly. Let the Judge decide whether federal law has been violated.
Look at YHOO headlines for BABA, 2 law firms have already filed lawsuits and there will probably more lawsuits down the road. The firms didn't become rich by filing frivolous actions.
Of course the found out BABA violated Federal laws. The SEC knows that investigating BABA is a political hot potato, they don't want to upset U.S.-- China business relationships more than they have to. So they already know the violations occurred. Now they are just waiting for Jack Ma to pay them off, and when he tries to bribe them, he will be hand-cuffed by the FBI.
The Big Boys don't actually trade for a living, the hedge fund guys do it for them. Many of the hedge fund guys will get out soon because they want to keep the Big Boys happy. It just makes sense, it's almost impossible to explain to someone that you knew of the investigation being initiated but you didn't reduce your position? And you lost money.
They take forever...wait till the Chinese Communist Party berates Jack Ma for embarrassing Chinese corporations doing business internationally.
To me, it appears like after the dust clears, YHOO non-core will continue doing business and retain BABA shares. But who knows...almost anything could happen.
Shorts have already covered. Looks like some people were expecting big news from Chinese government so all the China stocks popped. If news doesn't come out during AH or tomorrow's premarket, BABA may gap down tomorrow am.
Strange trading today. It sure seemed like some people were expecting important news to be released. If the news isn't released during AH or pre-market, we could just as easily gap down at the bell tomorrow morning.
Buying options at this time would be a mistake because BABA hasn't gone anywhere for a couple of weeks. It's unknown how long this situation will. At this time the only way an option trader can make money is by going short.
It's pointless to gamble on the weekly options...BABA weekly options have no liquidity. If you want to speculate...focus on the monthly options.
I pretty much agree, probably at least 6 months before IPO. Then there's always the possibility that Alipay may stay a closed corporation.
Today, BABA has been on a roller-coaster and the VIX has gone crazy. Somehow, these crazy politicians are getting WS upset and market volatility has gone up.
Now we can get excited. AMZN has shown, it's all about market share. BABA will have control of the China online market for the next 10 years.
Jim you better learn how to do accounting fast. Don't worry about your short position, you can always cover at a higher price.
Tomorrow at 9:00 am EST, we'll know then whether we will pop for the day. GLTA.