Option Bulls Busy as JD.com, Inc. (JD) Flies Higher

JD.Com Inc (ADR) (JD) is up 4.4% around midday

by

Published on Apr 7, 2015 at 11:47 AM
Updated on Apr 20, 2015 at 5:32 PM

JD.Com Inc (ADR) (NASDAQ:JD) calls have been the options of choice lately at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The stock's 10-day call/put volume ratio across these exchanges is 3.51, with more than three calls bought to open for every put.

Calls are again popular in JD's options pits around midday. By the numbers, roughly 10,000 contracts are on the tape -- or nearly 10 times the number of puts exchanged. Short-term speculators are especially busy, with buy-to-open activity detected at the weekly 4/10 31.50- and 32.50-strike calls. In purchasing these new positions, the traders are confident JD will topple the respective strikes by Friday's close, when the weekly series expires.

Another group that's optimistic toward JD is analysts. Of the 12 brokerage firms following shares of the e-commerce issue, eight have given them a "strong buy," compared to four "holds" and not a single "sell."

Today, that confidence is being rewarded, as JD.Com Inc (NASDAQ:JD) makes a sharp move to the upside amid reports the company is gaining market share from major rival Alibaba Group Holding Ltd (NYSE:BABA). At last check, the stock was 4.4% higher at $31.35, bringing its year-to-date lead north of 35%. What's more, JD hit a seven-month high of $31.84 earlier in the session.


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Stocks Eye Notable Weekly Gains on 3-Day Surge
Stocks are eyeing big weekly gains
WW Stock Brushes Off Bull Note
Morgan Stanley upgraded the Weight Watchers parent to "overweight" from "equal weight"
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.