Options Traders Target Surging E-Commerce Stock After Earnings

The company also added to its share repurchase program

Laura McCandless

Deputy Editor

Mar 6, 2024 at 2:52 PM

China-based e-commerce stock JD.com Inc (NASDAQ:JD) is soaring today, up 17.4% at $25.16 at last glance. The company beat fourth-quarter revenue estimates due to heavy demand and announced a $3 billion share repurchase program. Sharp discounts helped results, as "Singles Day" -- the largest annual Chinese shopping festival -- attracted consumers amid an uncertain economy.

Today's bull gap has JD trading at its highest levels since early January. Grappling with its 100-day moving average, which capped its late-December rally, the equity is still down 13.6% since the start of the year.

JD March6

Over in the options pits, JD.com stock has seen 214,000 calls and 68,000 puts exchanged so far, which is already four times the average daily options volume. The weekly 3/8 25-strike call is the most popular by far, with new positions being opened there.

This penchant for calls is nothing new. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JD's 50-day call/put volume ratio of 4.94 ranks higher than 99% of readings from the past year.

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