How Prosper Trading CEO Bauer Is Trading Alibaba

The video discusses current market trends, focusing on the Dow and NASDAQ, and the sentiment around large cap tech stocks. It explores the potential risks of increased regulation and its impact on profits. The NY Fang Index, including Alibaba, is analyzed, highlighting Alibaba's strong earnings and market position. A trading strategy involving a call spread on Alibaba is detailed, emphasizing the risk-reward ratio and market expectations.

What is the current sentiment regarding large-cap tech stocks according to the transcript?

• Investors are extremely optimistic.

• There is a massive sell-off occurring.

• The sentiment is unchanged with no panic.

• There is a clear sector rotation happening.

What is the perceived risk that could affect the profits of the tech sector?

• A sudden increase in interest rates.

• Increased regulation.

• A major technological breakthrough.

• A new competitor entering the market.

What is the NY Fang Index mentioned in the transcript?

• An index tracking small-cap tech companies.

• An index focused on European tech stocks.

• An index including a broader basket of large-cap tech stocks.

• An index for emerging market tech companies.

What is the main reason for the trading strategy on Alibaba?

• A new product launch by Alibaba.

• The stock reaching a massive support level.

• Alibaba's recent poor earnings report.

• A partnership with a major tech company.

What is the expected move in Alibaba's stock price according to the option market?

• $20

• $15

• $10

• $5