QuantSignals V3 | BABA Put Signal — Maximize Reversal Potential

🧭 Overview
Ticker: BABA
Current Price: $161.93
Trend: Overbought / Mixed
Confidence: 60%
Expiry: 2025-11-21 (7D)
Strike: $157.50

📊 AI & Technical Forecast

Katy AI Target: $159.42 (-1.55%) by week’s end

Extended Series: Downtrend toward $158.58 (-2.07%) by 11/20

RSI: 73.9 → overbought, high reversal potential

EMA / MACD: Diverging momentum, weakening bullish trend

VWAP: $161.40 → mean reversion pressure

Insights:

Price at 94.7% of weekly range → extreme overextension

News catalysts mixed: AI Mode rollout and ChatGPT competitor → initial bullish; hedge fund profit-taking → bearish

Options Flow: PCR 1.92 → institutional bearish positioning, smart money hedging

🎯 Trade Setup
Parameter Value
Direction PUT
Strike $157.50
Entry $1.91
Target 1 $2.87 (+50%)
Target 2 $3.82 (+100%)
Stop Loss $1.34 (–30%)
Position Size 3% of portfolio
⚡ Key Advantages

Contrarian setup: overbought RSI + institutional put-heavy flow

Friday expiration → gamma effects amplify put premium expansion

Tight 30% stop loss limits downside

Delta –0.301 balances probability and payout

Timing Edge:

Weekly expiration compresses timeframe; downside moves accelerate profit potential

Price near top of weekly range → asymmetric risk/reward

🚨 Risk Notes

Low AI confidence (50%) → speculative

Friday expiration → active monitoring required

Break above $164.36 → exit immediately

Positive AI/tech news could override technical forecast