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ETFs to Watch as Alibaba Reports Fiscal Q3 Earnings

February 13, 2020

“The looming fears of CoronaVirus impacting Alibaba’s futures guidance on Thursday’s earnings has not translated into option prices,” said Garrett DeSimone, head quant at OptionMetrics. “The implied volatility ahead of BABA’s earnings is near the pre-level’s earnings for Q3 2019 announced on Nov 1st, which is approximately 40%. These volatility levels are significantly less than previous earnings which were near 50%, demonstrated in the graph. Implied volatility measures the expectations of future price fluctuations, with large values predicting higher movements.

Garrett DeSimone, head quant of OptionMetrics, shares insight on ETFs to watch as volatility for China’s online commerce giant Alibaba increases.