January 2026 Expiration Options Unveiled

Investors engaging with Alibaba Group Holding Ltd (Symbol: BABA) were introduced to a new wave of options this week – the January 2026 expiration. This elongated timeframe of 749 days till expiration showcases an appealing opportunity for sellers of puts or calls. The newly available contracts present a potential avenue for achieving a higher premium than what would typically be available for contracts with a nearer expiration date.

Potential for Sellers and Buyers

One of the critical inputs that influences the price an option buyer is willing to pay is the time value. With this prolonged expiration timeline, investors can explore lucrative prospects for both puts and calls.

Options Chain Insights

The put contract at the $75.00 strike price boasts a current bid of $13.05. For an investor considering selling-to-open that put contract, they are committing to acquire the stock at $75.00, yet will also garner the premium. This lowers the cost basis of the shares to $61.95 – a tempting alternative to the current $77.20/share price. This represents an approximate 3% discount to the existing trading value, positioning the contract as out-of-the-money by that percentage. Consequently, there is a 67% chance the put contract may expire worthless, offering a 17.40% return on the cash commitment, or 8.48% annualized, yielding it the moniker ‘YieldBoost’ at Stock Options Channel.