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

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

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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.


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