52-Week Low Alert: Trading today’s movement in JD.COM INC $JD

Quantchabot has detected a promising Bear Call Spread trade opportunity for JD.COM INC (JD) for the 10-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

JD was recently trading at $25.98 and has an implied volatility of 42.04% for this period. Based on an analysis of the options available for JD expiring on 10-Nov-2023, there is a 34.22% likelihood that the underlying will close within the analyzed range of $23.43-$26.08 at expiration. In this scenario, the average linear return for the trade would be 20.88%.

52 week low: JD.COM INC recently reached a new 52-week low at $25.88. JD had traded in the range $26.36-$67.09 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if JD maintains its current direction and does not revert back to pricing on the bullish side of $25.98 on 10-Nov-2023. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if JD.COM INC closes at or below $26.08 on 10-Nov-2023. Based on our risk-neutral analysis, there is a 50.05% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.






Leave a Reply