On CNBC’s “Options Action,” Tony Zhang said JD.Com Inc (NASDAQ:JD) reports earnings Wednesday morning and the options market is implying a move of 6.8% in either direction. That is the second smallest earnings move for the past eight quarters, said Zhang.
Fifteen minutes before the close on Monday, he saw a very sizable trade of 12,000 contracts of the June $67.50 synthetic stock for $0.69. The trader sold 12,000 contracts of the June $67.50 put for $2.92 and bought 12,000 contracts of the June $67.50 calls for $3.61. The trade has a risk profile of being long 1.2 million shares of JD.Com.
