Bulls keep running with $JD

Option traders tripled their money in JD.com today for the second session in a row.

On Dec. 11, Investitute’s tracking systems detected the purchase of 3,000 June $30 calls in one print for $0.85 with shares at $21.21. This was cleraly a new position, as open interest in the strike was only 651 contracts before that session began.

Those calls traded for as much as $2.38 today, nearly 3 times their purchases price. The stock rallied 38.38% in the same time period, a large move but one that was still far below that of its options on a relative basis.

It is the second winning trade in the name posted on Investitute in as many days.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

JD was up 3.68% to $28.73 today. The Beijing-based e-commerce company beat quarterly estimates before the market opened yesterday.