JD.Com Stock May See Another Volatile Post-Earnings Swing

Shorts have been retreating from the Chinese tech stock

Managing Editor
Nov 14, 2019 at 3:05 PM
facebook twitter linkedin


Chinese tech name JD.Com Inc (NASDAQ:JD) was last seen down 0.4% to trade at $33.21 this afternoon, potentially suffering pre-earnings pullback as Wall Street gears up for the company's third-quarter report, slated for before the open tomorrow, Nov. 15. Below we will take a closer look at what the options market is pricing in for the stock's post-earnings moves, and see how JD has performed on the charts of late.

On the charts JD.Com has been climbing higher, up 58% year-to-date, with long term support stemming from the 200-day moving average. This trendline has captured multiple pullbacks for the equity since March, and most recently guided the stock higher in October, preceding Monday's annual high of $34.09.

Daily JD with 200MA

Looking at the stock's earnings history, JD has closed higher the day after reporting in the last three quarters, including a 12.9% surge in August. During the past eight quarters, the stock has averaged a post-earnings swing of 5.6%, regardless of direction. This time around, the options market looks to be pricing in a larger-than-average 9.5% move for Friday's trading.

Lastly, short interest has rolled back 12.7% on JD.Com stock during the most recent reporting period. This accounts for 3.5% of the stock's total available float, or 3.5 times the equity's average pace of daily trading.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners