Alibaba IPO made history. This was the largest IPO that world had ever seen. IPO was overbooked and on the first day of trading on NY Stock Exchange on September 19th, Alibaba stocks gave a good return to the IPO buyers. There’s a new way to trade Chinese online retail giant Alibaba. After its record initial public offering on Sept. 19, options on the stock debuted Monday for trading. And in a vigorous day of trading, the biggest traders were pursuing an interesting strategy: selling options in an effort to squeeze more money out of a likely stock position. On big options trade on Alibaba involves constructing a strangle by selling puts and calls at the same time in equal amount. This strangle might work as BABA Alibaba stock has been trading in a tight range since the IPO. A strangle is a high risk high return options trading strategy.