JD.com, Inc. (JD) Revenue Beat Brings in the Bulls

JD.Com Inc (ADR) (JD) is rallying today, and option traders expect more upside

by Digital Content Group

Published on Mar 3, 2015 at 11:01 AM
Updated on Jun 24, 2020 at 10:16 AM

JD.Com Inc (ADR) (NASDAQ:JD) gapped higher this morning, after it reported better-than-expected fourth-quarter revenue. The shares were last seen 4% higher at $29.29, and speculators are betting on even more upside. For instance, calls are changing hands at seven times the normal mid-morning pace, and have outnumbered puts by a nearly 10-to-1 margin.

Traders are focusing on the April 30 and 31 calls where over 3,000 contracts have crossed at each strike. It appears speculators are buying to open both contracts, expecting JD to eclipse the respective strikes by the close on Friday, April 17, when back-month options expire. JD hasn't toppled $30 since mid-September, and peaked at $29.90 today.

On the sentiment front, seven covering analysts currently rate JD a "strong buy," while the five other brokerage firms covering the shares rate them a "hold." Also, the equity's average 12-month price target of $32.57 is just a hop, skip, and jump from its current trading levels.

JD.Com Inc (NASDAQ:JD) has been dynamite on the charts this year, tacking on nearly 23%. Recently, the security has enjoyed a lift from its ascending 10-day moving average. Meanwhile, rival Alibaba Group Holding Ltd (NYSE:BABA) is exploring record lows after getting the boot in Taiwan.

Daily Chart of JD Since December 2014 with 10-Day Moving Average

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