JD stock replacement bought 1500 December $48 calls at $2.97 into the minor dip as it tested its 8 day EMA and started to bounce as the strong recent rally in China likely continues into year end. There have been numerous other bullish trades opening and also adjustments from past weeks bulls that caught the large rally. Notable also is the steep call IV skew in JD and has seen far OTM January calls buying at $75 and $80 strikes with the stock trading in the mid 40s.  in China JD.com, Inc. provides supply chain-based technologies and services in the People’s Republic of China. The company offers computers, communication, and consumer electronics products. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions.

The $64B China name still trades cheap at just 10.5x earnings, 0.4x sales and set to grow sales +5-6% the next few years. Like alot of its Chinese peers it trades at a discounted valuation as China just saw sentiment get pummelled the past year. With the stimulus coming to their markets, this rally is likely in early stages on the long term timeframe based on valuations alone. The China names were due to pause and dip but JD and others are testing their rising 8 day EMA’s now and likely to work higher into December like this bull is expecting. The Dec $48 calls at $3 or less is a nice cheap way to play upside into year end. David Tepper’s Apaloosa fund owns 4.3 million shares after they added 660K last quarter.