If you missed out on the post-earnings rally for Alibaba Group Holding Ltd (NYSE:BABA), your chance has come back around again. After rallying to $105 following a record-breaking earnings report, Alibaba stock has pulled back to the psychologically significant $100 area, marking a prime entry point for a long position as BABA eyes all-time highs.

Click to Enlarge Alibaba stock has spent the past several sessions consolidating into the $100 region, helping the shares to blow off an overbought condition.

Not only is $100 home to key technical and sentiment support, BABA’s 20-day moving average is also rising into the area, providing an additional springboard for the shares.

As for sentiment, Wall Street remains widely bullish on Alibaba stock. According to data from Thomson/First Call, analysts have doled out just five “hold” ratings compared to 37 “buy” or better ratings. Additionally, the 12-month consensus price target of $125.19 represents a roughly 25% premium to Monday’s close.

Short sellers, however, aren’t so keen on Alibaba stock. During the most recent reporting period, the number of BABA shares sold short rose by 4% to 114 million shares, or roughly 10.5% of the stock’s total float. As Alibaba stock rallies off support at $100, these shorts may be forced to buy back their bets, thus adding fuel to the fire for BABA shares.

That said, short sellers may be a bit nervous right now, if BABA’s options activity is any indication. Currently, the March put/call open interest ratio for Alibaba stock rests at 0.61, with calls nearly doubling puts among options set to expire within the next two months. In other words, either BABA call traders are betting on a continued rally, or short sellers are hedging their bets with purchased calls. Either way, this high degree of call OI is a bullish indicator for Alibaba stock.

2 Trades for Alibaba Stock

Call Spread: For those looking to bet on a Alibaba stock bounce from $100, a March $105/$110 bull call spread has some impressive profit potential. At last check, this spread was offered at 94 cents, or $94 per pair of contracts. Breakeven lies at $105.94, while a maximum profit of $4.06, or $406 per pair of contracts, is possible if Alibaba stock trades at or above $110 when March options expire next month.

Put Sell: If a more neutral positions suits your trading style more, then a BABA March $97.50 put sell position has a solid chance at finishing out of the money. At last check, this put was bid at $1.44, or $144 per contract. Remember that you keep the initial premium received as long as Alibaba stock closes above $97.50 when March options expire. However, if BABA trades below $97.50 ahead of expiration, you could be assigned 100 shares of BABA stock for every put sold at a cost of $97.50 per share.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.