Investors with a lot of money to spend have taken a bearish stance on JD.com JD.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with JD, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 11 uncommon options trades for JD.com.
This isn't normal.
The overall sentiment of these big-money traders is split between 45% bullish and 54%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $309,423, and 6 are calls, for a total amount of $416,038.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $25.0 to $40.0 for JD.com over the last 3 months.
Insights into Volume & Open Interest
In terms of liquidity and interest, the mean open interest for JD.com options trades today is 5759.7 with a total volume of 9,113.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for JD.com's big money trades within a strike price range of $25.0 to $40.0 over the last 30 days.
JD.com Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| JD | CALL | SWEEP | BULLISH | 12/15/23 | $27.50 | $155.6K | 10.3K | 3.2K |
| JD | PUT | SWEEP | BULLISH | 01/19/24 | $31.26 | $136.5K | 5.2K | 146 |
| JD | CALL | TRADE | BULLISH | 01/16/26 | $35.00 | $80.0K | 305 | 200 |
| JD | CALL | SWEEP | BEARISH | 01/19/24 | $28.76 | $74.7K | 7.2K | 881 |
| JD | PUT | TRADE | BEARISH | 12/15/23 | $27.50 | $65.8K | 12.8K | 3.4K |
About JD.com
JD.com is a leading e-commerce platform with its 2022 China GMV being similar to Pinduoduo (GMV not reported), on our estimate, but still lower than Alibaba. it offers a wide selection of authentic products with speedy and reliable delivery. The company has built its own nationwide fulfilment infrastructure and last-mile delivery network, staffed by its own employees, which supports both its online direct sales, its online marketplace and omnichannel businesses.
Following our analysis of the options activities associated with JD.com, we pivot to a closer look at the company's own performance.
Present Market Standing of JD.com
- With a trading volume of 15,529,671, the price of JD is down by -5.28%, reaching $27.08.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 112 days from now.
Professional Analyst Ratings for JD.com
In the last month, 4 experts released ratings on this stock with an average target price of $51.0.
- An analyst from Goldman Sachs persists with their Buy rating on JD.com, maintaining a target price of $53.
- Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for JD.com, targeting a price of $45.
- An analyst from Benchmark has revised its rating downward to Buy, adjusting the price target to $67.
- An analyst from UBS has elevated its stance to Buy, setting a new price target at $39.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for JD.com, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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