Options Bulls Target Descending E-Commerce Stock

Call options are running at double their usual volume

Deputy Editor
Oct 15, 2020 at 1:51 PM
facebook X logo linkedin

China-based e-commerce name JD.Com (NASDAQ:JD) is modestly lower today, down 2% at $79.49 at last check. After bouncing off its 10-day moving average in late September, which the stock is contending with today, JD climbed on the charts to reach the $85 region earlier this week -- a chip-shot from the shares' Sept. 2, record high of $86.58. Though pulling back since those highs, the equity is still up 125.5% year-to-date.

JD October

Despite this week's dip on the charts, options bulls are coming out in droves. So far today, 53,000 calls and 17,000 puts have crossed the tape, with call volume running at double its usual rate. The December 80 call, where new positions are being opened, is the most popular by far. This means plenty of call traders are chiming in on more upside for JD by December expiration, which most likely has something to do with e-commerce sales during a busy time in the midst of coronavirus. 

This penchant for calls isn't unusual for JD.  In fact, of late, 3.29 calls have been bought for every put in the last 10 weeks at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). What's more, this ratio is 70% higher than all other readings from the past year, meaning calls have been picked up at a faster-than-usual rate during this time period. 

Lastly, analysts have also been optimistic toward the security, This is per the nine of 12 covering brokerage firms that sport a "strong buy" recommendation coming into today's trading.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI