Spotlight on JD.com: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on JD.com JD.

And retail traders should know.

We noticed this today when the trades 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.

Today, Benzinga's options scanner spotted 10 options trades for JD.com.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 60%, bearish.

Out of all of the options we uncovered, 9 are puts, for a total amount of $1,785,813, and there was 1 call, for a total amount of $31,500.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $28.76 to $35.0 for JD.com during the past quarter.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in JD.com's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to JD.com's substantial trades, within a strike price spectrum from $28.76 to $35.0 over the preceding 30 days.

JD.com Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

About JD.com

JD.com is a leading e-commerce platform with its 2022 China GMV being similar to Pinduoduo (GMV not reported), on our estimate, but still lower than Alibaba. it offers a wide selection of authentic products with speedy and reliable delivery. The company has built its own nationwide fulfilment infrastructure and last-mile delivery network, staffed by its own employees, which supports both its online direct sales, its online marketplace and omnichannel businesses.

In light of the recent options history for JD.com, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of JD.com

• With a volume of 3,232,902, the price of JD is down -0.64% at $28.13.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 104 days.

What The Experts Say On JD.com

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $45.25.

• An analyst from Benchmark downgraded its action to Buy with a price target of $67.
• An analyst from Barclays has decided to maintain their Overweight rating on JD.com, which currently sits at a price target of $45.
• An analyst from Susquehanna has decided to maintain their Neutral rating on JD.com, which currently sits at a price target of $30.
• An analyst from UBS has elevated its stance to Buy, setting a new price target at $39.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for JD.com with Benzinga Pro for real-time alerts.