Why the JD Weekly
Options Trade was Originally Executed!
JD.Com Inc (NASDAQ: JD) slumped
to a record low in Hong Kong as Wall Street brokerages turned bearish on the
stock and rumors swirled that a businessman with the same surname as the
company’s chairman had been arrested.
At least seven brokerage firms including Morgan Stanley and
Citigroup Inc. have either downgraded the stock or lowered price targets in the
past two days. The stock extended its drop after JD.com said on its Weibo
account it had lodged a police report over a rumor that a businessman surnamed
Liu had been arrested on suspicion of violation of laws. The firm’s chairman is
The NVDA Weekly
Options Trade Explained.....
** OPTION TRADE: Buy JD OCT
27 2023 27.000 PUTS - price at last close was $0.62 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the JD Weekly Options (PUT) Trade on Friday, October 13, 2023, for $0.90.
Sold the JD weekly options contracts on Friday, October 20, 2023 for $2.79; a potential profit of210%.
Don’t miss out on further trades – become a
JD.com, Inc., also known as Jingdong and Joybuy, is a Chinese e-commerce
company headquartered in Beijing. Founded on June 18, 1998, by Qiangdong Liu,
JD.com started as an online magneto-optical store but quickly diversified its
product offerings to include electronics, mobile phones, computers, and other
consumer goods. Over the years, the company has become one of China's largest
B2C online retailers by transaction volume and revenue. JD.com operates through
various business segments, including JD Retail, JD Logistics, JD Technology, JD
Health, and JD Digits. The company's core business, JD Retail, offers an
extensive range of products through its online retail platform, known for its
authentic low prices, quality assurance, and customer-centric approach.
With a mission to provide customers with a convenient and reliable
shopping experience, JD.com has built a robust logistics network to facilitate
fast and efficient deliveries. The company has also heavily invested in advanced
technologies like AI, big data, and cloud computing to enhance its operations
and provide innovative solutions to its customers.
JD.com's target market primarily includes consumers worldwide who prefer
online shopping for a wide range of products, from electronics to fashion,
groceries, and healthcare items. The company aims to cater to the diverse needs
of its customers by offering a vast selection of products from local and
JD.com's leadership team is led by its Founder and Chairman, Mr.
Qiangdong Liu. Under his guidance, the company has experienced tremendous
growth and has become a prominent player in the e-commerce industry. The Chief
Executive Officer and Executive Director, Ms. Ran Xu, brings experience driving
operational excellence and customer-centric strategies. The management team
comprises professionals with diverse backgrounds and expertise in technology,
logistics, finance, and marketing. Their collective efforts have contributed to
the company's success and its ability to stay ahead in the competitive market.
In 2022, JD.com reported a remarkable year-over-year increase in
revenue, reaching over one trillion CNY (around USD 140 billion), showcasing
its strong market presence and continuous growth. The company's net income also
surged significantly, highlighting its profitability and efficient cost
management strategies. Moreover, JD.com's net profit margin substantially
improved, reflecting better operational efficiency and profitability. The
company's robust EBITDA growth indicates its ability to generate significant
earnings before accounting for interest, taxes, depreciation, and amortization.
However, it is important to interpret these financial metrics in conjunction
with the stock's performance and other market dynamics to understand JD.com's
overall health and attractiveness of JD.com as an investment.
Multiple factors, including financial performance, market sentiment, and
overall economic conditions, have influenced JD.com's recent stock performance.
Positive earnings reports and strategic announcements have typically led to
stock price appreciation, whereas unexpected challenges or external factors may
result in short-term fluctuations. It's essential to consider the stock's
performance in the context of the broader market and the e-commerce industry to
make well-informed investment decisions.
JD.com operates in the highly competitive e-commerce industry, which has
experienced rapid growth in recent years. The company's key advantage lies in
its expansive product range, efficient logistics infrastructure, and commitment
to customer satisfaction. JD.com's strong logistics network provides a competitive
edge compared to its peers, enabling faster and more reliable deliveries. Its
strategic partnerships with leading companies have also expanded its market
JD.com has several growth opportunities to leverage in the dynamic
e-commerce landscape. The continued growth of online shopping in China and
globally presents a vast market for JD.com to capture. Expanding its product
categories and reaching untapped customer segments are potential avenues for
growth. JD.com's investment in advanced technologies, including AI and big
data, also opens doors for further innovation in customer experience and supply
Despite its success, JD.com faces various risks and challenges that
investors should consider. Intense competition from other e-commerce giants,
regulatory changes, and economic uncertainties could impact the company's
performance. Supply chain disruptions, cybersecurity threats, and changing
consumer preferences pose potential risks. JD.com must manage these risks effectively
through proactive strategies and adaptability to market dynamics.
Further Catalysts for the JD Weekly Options Trade…..
share price has halved since the start of the year, reflecting concerns about
China’s sluggish consumption as the authorities struggle to revive spending and
growth. A subdued domestic inflation print released Friday and lackluster
spending data from the Golden Week Holiday suggest that the retailer may face
an uphill battle in trying to reverse the negative sentiment.
“We expect a
long-term trend of consumption downgrade in China, and if JD is not able to
successfully implement its low price strategy that caters to the trend, we
think it could be in a structurally less favorable position in China’s
e-commerce market,” Morgan Stanley analysts including Eddy Wang wrote in a
shares dropped as much as 13% to an all-time low of HK$102.50 since its listing
in 2020 in Hong Kong. Its US-listed shares fell as much as 4.4% in premarket
trading on Friday. The move came after a slew of brokerages cut their outlook
on the stock, citing worries about how the firm will grow its revenue amid the
weaker macro environment in China.
has been challenging as consumer demand for big-ticket items — a segment that
the company used to thrive on in the past — has been particularly weak in
China, To make matters worse, its massive discount campaign hasn’t helped in
fending off the challenge from PDD Holdings Inc., which is grabbing market
share by using a low price strategy.
into 4Q23, despite seasonally strong 11.11 promotion, we believe cautious
consumption sentiment and competitive pricing discount are likely to weigh on
any meaningful rebound of growth for JD,” Citigroup analysts including Alicia
Yap wrote in a note.
JD.com, which is also China's largest home appliance retailer, closed at their
lowest level since their June 2020 debut.
crisis in the key property sector has contributed to slowing China's economic
growth after the pandemic, while many Chinese have cut back on spending due to
concerns over the economy and job security, hurting the retail sector.
JD.com warned it would take time to rebuild consumer confidence post-pandemic
as it missed fourth-quarter revenue forecasts.
Research lowered its revenue assumption for JD.com by 3.4% and 4.3% for the
third and fourth quarter, saying that it now estimates 0.8% and 1.3% growth
analysts cited a "relatively muted consumption trend, high base, intense
competition, and on-going impact from restructuring adjustment" for the change
JD.com had yet to see any meaningful improvement in retail since the third
quarter, adding that the company had also missed on any positives from the
stimulus policies China has rolled out since September to rescue the property
Several banks and brokers cut price targets and revenue growth forecasts
for the firm, citing a weaker-than-expected recovery in consumer spending.
The brokerages and banks including Citi, Daiwa and Jefferies, which
issued notes to clients on Thursday and Friday with the revised estimates.
According to the issued ratings of 11 analysts in the last
year, the consensus rating for JD.com stock is Moderate Buy based on the
current 5 hold ratings and 6 buy ratings for JD. The average twelve-month price
prediction for JD.com is $53.64 with a high price target of $73.00 and a low
price target of $38.00.
has a fifty day simple moving average of $32.74 and a 200 day simple moving
average of $35.51. The firm has a market capitalization of $39.44 billion, a
P/E ratio of 14.79, and a PEG ratio of 0.27 and a beta of 0.57. The company has
a quick ratio of 1.10, a current ratio of 1.34 and a debt-to-equity ratio of