At first blush, Chinese e-commerce enterprise JD.com, Inc. (NASDAQ:JD) seems to have cast a dark shadow over bullish investors. For one thing, the performance of JD stock hasn't been all that great, losing more than 13% on a year-to-date basis. Difficulties in U.S.-China trade relations impose a harsh light on the business. If that weren't enough, unusual options activity apparently points the forward trajectory in the wrong direction.
Just hours ago, deep-pocketed investors — commonly known as whales — appeared to have taken a bearish stance against JD stock. Specifically, among big block transactions, 66% of the order flow appeared to have bearish leanings while only 11% appeared to be net bullish. Given not only the broader weakness of JD shares but also near-term volatility — with the security losing about 8.5% in the trailing month — the options data represents a possible warning.
