JD.com Shares Fail to Gain After CEO Update

JD shares are in the red today

Dec 24, 2018 at 9:51 AM
facebook twitter linkedin

JD.com, Inc. (NASDAQ:JD) was last seen down 7.7% at $19.46, as traders react to news that the company's founder and CEO Richard Liu will not be charged after being accused of rape back in September. JD shares were trading above $30 before the news hit, and wound up hitting an all-time low of $19.21 a month ago.

Meanwhile, option traders' sentiment has shifted since we last looked at the e-commerce giant earlier this month. Specifically, JD's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) has moved up to 0.90. While this shows call buying has remained more popular on an absolute basis, the reading ranks in the 92nd annual percentile, revealing an unusual interest in long puts.

Pessimism has been building elsewhere, too. Short interest rose by 13.7% in the last two reporting periods, and now accounts for 6.9% of the total float. At the same time, it'd take these bears just 2.2 days to cover, based on average daily trading volumes. As for analysts, there are 13 in coverage, and just four recommend buying JD.com. The average 12-month price target sits up at $27.89, however.


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