27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Someone with a lot of money to spend has taken a bearish stance on JD.com (NASDAQ:JD).
And retail traders should know.
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We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with JD, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 20 uncommon options trades for JD.com.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $252,936, and 15 are calls, for a total amount of $861,939.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $32.5 to $47.5 for JD.com over the last 3 months.
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Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for JD.com options trades today is 4086.46 with a total volume of 7,795.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for JD.com's big money trades within a strike price range of $32.5 to $47.5 over the last 30 days.
JD.com Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| JD | CALL | TRADE | BEARISH | 07/21/23 | $42.50 | $157.5K | 1.2K | 2.5K |
| JD | CALL | TRADE | NEUTRAL | 01/19/24 | $38.76 | $133.9K | 486 | 0 |
| JD | PUT | SWEEP | BEARISH | 06/16/23 | $35.00 | $74.5K | 18.8K | 1.0K |
| JD | PUT | SWEEP | BEARISH | 06/16/23 | $35.00 | $74.3K | 18.8K | 523 |
| JD | CALL | SWEEP | BEARISH | 07/21/23 | $35.00 | $73.4K | 1.1K | 266 |
Where Is JD.com Standing Right Now?
- With a volume of 1,751,842, the price of JD is down -1.81% at $35.34.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 91 days.
What The Experts Say On JD.com:
- Benchmark has decided to maintain their Buy rating on JD.com, which currently sits at a price target of $72.
- Mizuho has decided to maintain their Buy rating on JD.com, which currently sits at a price target of $70.
- Loop Capital has decided to maintain their Hold rating on JD.com, which currently sits at a price target of $40.
- Susquehanna has decided to maintain their Neutral rating on JD.com, which currently sits at a price target of $40.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for JD.com, Benzinga Pro gives you real-time options trades alerts.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.