JD.com (NASDAQ: JD) – Options traders bet big on JD.com

JD.Com Inc (NASDAQ: JD) broke bullish on Tuesday from a descending channel that had pushed its stock lower since February 17, when it hit a new all-time high of $ 108.29.

Shares of the Chinese online retailer and internet company then consolidated on Wednesday and Thursday, marking and bouncing off the exponential eight-day moving average. Options traders think the bottom is for JD and are betting over $ 6.71 million that his shares are up.

See also: iPhone demand drives record sales for Alibaba, JD on ‘6.18’ launch day

Why this is important: When a sweep order occurs, it indicates that the trader wanted to take a position quickly and is anticipating a large and imminent move in the stock price. A sweeper pays the market price for the call option instead of placing a bid, which scans the order book of multiple exchanges to execute the order immediately.

These types of call option orders are typically placed through institutions, and retail investors may find it useful to watch the sweepers as this indicates that “smart money” has taken a position.

JD.com options transactions: Below is an overview of notable option alerts, courtesy of Benzinga Pro:

  • At 10:25 am Thursday, a trader executed a near-demand call sweep of 1,749 JD.com options with a strike price of $ 77.50 expiring September 17th. The trade represented a bullish bet of $ 857,010 for which the trader paid $ 4.90 per option contract.
  • At 10:25 am, a trader executed a near-demand call sweep of 1,648 JD.com options with an exercise price of $ 77.50 expiring September 17th. The trade represented a bullish bet of $ 817,408 for which the trader paid $ 4.96 per option. Contract.
  • At 10:25 am, a trader executed a near-demand call sweep of 2,385 JD.com options with a strike price of $ 77.50 expiring on September 17th. The trade represented a bullish bet of $ 1.21 million for which the trader paid $ 5.09 per option contract.
  • At 10:25 a.m., a trader executed a near-demand call sweep of 841 JD.com options with a strike price of $ 77.50 expiring on September 17. The trade represented a bullish bet of $ 428,910 for which the trader paid $ 5.10 per option. Contract.
  • At 12:13 p.m., a trader executed a near-demand call sweep of 5,000 JD.com options with a strike price of $ 115 expiring on October 15. The trade represented a bullish bet of $ 400,000 for which the trader paid 80 cents per option contract.
  • At 12:19 p.m., a trader executed a near-demand call sweep of 3,001 JD.com options with a strike price of $ 77.50 expiring September 17. The trade represented a bullish bet of $ 1.52 million for which the trader paid $ 5.09 per option contract.
  • At 12:19 pm, a trader executed a near-demand call sweep of 1,758 JD.com options with a strike price of $ 77.50 expiring September 17th. The trade represented a bullish bet of $ 896,580 for which the trader paid $ 5.10 per option. Contract.
  • At 12:19 p.m., a trader executed a near-demand call sweep of 1,134 JD.com options with a strike price of $ 77.50 expiring September 17. The trade represented a bullish bet of $ 589,680 for which the trader paid $ 5.20 per option. Contract.

JD Price Action: JD shares closed Thursday down 1.33%. at $ 75.52.

(Photo: JD.com)

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


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