JD.com Stock Hits New High on IPO Report

JD may use proceeds of an overseas IPO for acquisitions

Dec 23, 2019 at 10:01 AM
facebook twitter linkedin


JD.Com Inc (NASDAQ:JD) is up 3.8% this morning at $36.65, thanks to a Reuters report indicating the company is exploring an overseas initial public offering (IPO) for its logistics business. According to the article, the IPO could raise between $8 billion to $10 billion -- which equates to roughly one-fifth of JD's market cap -- and the proceeds could go toward expanding warehouses or acquisitions.

This price action has JD shares exploring fresh highs, with this morning's early peak of $36.80 marking the highest point reached since August 2018. The shares in November broke above the formerly resistant $32 level, which then acted as support, helping the Chinese e-commerce concern rise 15% in the past month -- though their 14-day Relative Strength Index (RSI) was already in overbought territory before today at 71.

Calls have remained popular at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), where the 10-day call/put volume ratio stands at 3.75. Calls are already hot this morning, with new positions opening at the weekly 12/27 37.50-strike call. Those buying the contract expect JD shares to keep rising through the close this Friday, when the weeklies expire.

 

 

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