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

Shorts have been retreating from the Chinese tech stock

by Emma Duncan

Published on Nov 14, 2019 at 3:05 PM
Updated on Jun 24, 2020 at 10:16 AM

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.


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