Alibaba (BABA) and Trump Tariffs

As far as I know, Alibaba (BABA) has most of their revenue coming from China and other Asian / African countries (About 90% total from what I gather.

These 10% tariffs Trump just put on Chinese goods barely affect BABA's core business. That said, BABA is down even further today, and after hours, to new 52 week lows ($156.10 as of right now) so clearly it's not good. I don't really know what to do anymore. I bought at $169.90 a couple week ago, given that in the past year, $167 has been a very strong support level, so I thought I could make a quick flip.

My plan B was to hold long if this didn't work, as I do (I did) see potential in the company long term.

Now I'm in a falling knife situation and the Bear thesis is becoming much more convincing. (BABA's accounting practices, the structure of the company itself (VIE), as well as everything else that's happening right now politically).

So should I buy puts to hedge my position, or just cut my losses? I'm not sure what to do anymore.

Thanks

Submitted September 17, 2018 at 09:59PM by LuxGang https://ift.tt/2NPcLyo