China E-Commerce Stock to Buy on The Dip

Options look attractively priced at the moment

Digital Content Manager
Jan 31, 2023 at 3:09 PM
facebook twitter linkedin

China-based e-commerce name JD.Com Inc (NASDAQ:JD) is down 0.2% to trade at $59.72 at last check. While the stock has struggled over the past 12 months, shedding 15.2%, JD bounced off its 2022 low of $33.19 before running into long-term resistance at the $68 level. The shares now look ready to attempt another rally, with support from the $58 region, after pulling back to a historically bullish trendline that has boosted the equity in the past.   

Digging deeper, JD.Com stock has pulled back to within one standard deviation of its 50-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White's most recent study, JD saw seven similar signals over the last three years, and was higher one month later 86% of the time, averaging a 4.4% rise. A comparable move from its current perch would place the security back above $62.


 JD 50 Day 

Options traders are already overwhelmingly bullish toward JD. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 3.92 ranks higher than all readings from the past year, indicating calls have been getting picked up at a much quicker-than-usual clip.

Options are a good way to bet on stock's next moves. This per its Schaeffer's Volatility Index (SVI) of 50%, which sits in the low 7th percentile of readings from the past year. In other words, options traders are pricing in low volatility expectations.  


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners