On CNBC's "Options Action," Bonawyn Eison said calls outpaced puts 1.5 times in JD.Com Inc JD on Wednesday and volumes were only 20% higher going into earnings.
The company reported better-than-expected earnings on Thursday before the market open, but after an initial move higher of around 5%, it's currently trading flat.
The options market expected a move of 6% going into the event.
One trade caught Eison's attention on Wednesday. Around 4,000 contracts of the June $82.50 puts were traded for $4.45. The trade breaks even at $78.05 or around 13% below the current price.
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