How MKM's Jim Strugger Is Trading Alibaba

The video discusses the recent movements in the Shanghai Composite, highlighting a significant bounce after a dramatic fall, and the implications of the ongoing trade war between the USA and China. It explores opportunities in Chinese ADRs, particularly focusing on Alibaba, which is seen as a strong market player with potential upside. The video also explains a specific options trading strategy, the call butterfly, for Alibaba, detailing its structure and potential payoff.

What recent event is considered the opening salvo of a trade war between the USA and China?

• The enactment of tariffs

• A diplomatic meeting

• A stock market crash

• A new trade agreement

Which Chinese company is highlighted as a major ADR in the US market?

• JD.com

• Baidu

• Alibaba

• Tencent

What is the market cap of Alibaba as mentioned in the video?

• $400 billion

• $300 billion

• $500 billion

• $600 billion

What is the payoff ratio of the call butterfly strategy discussed for Alibaba?

• 7.3 to 1

• 6 to 1

• 5 to 1

• 8 to 1

In the call butterfly strategy, what is the maximum loss one can incur?

• $1.50

• $1.20

• $1.00

• $0.80