Schaeffers Investment Researchยท2025-11-24 15:44Core Insights - Both Alibaba Group Holding Ltd (BABA) and Alphabet Inc (GOOGL) are experiencing significant market attention due to their recent AI developments, with GOOGL trading at record highs and BABA showing a rebound from a key trendline [1] Group 1: Stock Performance - BABA's stock has increased by 4.7%, trading at $160.08, following its AI chatbot Qwen achieving 10 million downloads in its first week; the stock is now 90% higher in 2025, with a 10% quarterly drawdown finding support at its 80-day moving average [2] - GOOGL's stock is up 5.5%, trading at $315.55, after positive reviews for its AI model Gemini 3; the stock reached a record high of $318.57 and is currently 67% higher year to date [2] Group 2: Options Trading Activity - Short-term options traders are increasingly favoring puts, with BABA and GOOGL's Schaeffer's put/call open interest ratios (SOIR) at 0.95 and 0.77, placing them in the 100th and 74th percentiles of their annual ranges, respectively [3] - The popularity of options stocks is expected to rise amid a post-earnings volatility crush, with their Schaeffer's Volatility Indexes (SVI) ranking in the 26th and 32nd percentiles of their annual range; both stocks have a history of exceeding option traders' volatility expectations, as indicated by Schaeffer's Volatility Scorecards (SVS) at 86 and 80 [4]