Bullish and bearish option plays in JD ahead of earnings
Bullish and bearish option plays in JD ahead of earnings. The stock off 5% to $27.25 and has shed 9.1% on the week amid broader losses in Chinese equities. One player buys the dip with 6.8K Jun 28 - 32 call spreads for $1.35 on ISE. The vertical opens both legs and targets a 17% rebound to $32 or better through the June expiration. Separately, 5K Sep 25 - 30 risk-reversals trade even money on ISE (sold calls, bought puts) and also opens a new position. 5K Sep 27 calls trade $2.67 and appears to be closing seller. Lastly, 1K May 32 calls sold to buy 1K May 26 - 28 put spreads for 89c. Total volume is running double the typical levels at 55K calls and 25K puts. 30-day implied volatility moved up 8% to 53.5, with earnings due 5/10/19.