Investors are prepared for a big jolt in battered shares of JD.com Inc. following an earnings report from the Chinese e-commerce company, which is mounting a costly foray into food delivery.

Options traders are pricing in a 6.9% move in the Hong Kong-listed stock in either direction after the results due later Tuesday, versus an average 4.2% move following the last eight quarterly reports. Its shares are down 22% from a March high, underperforming all but two members of the Hang Seng Tech Index.

The company launched its food-delivery platform in February, and has been burning cash on customer discounts in an effort to steal market share from sector leader Meituan. The intense competition is particularly painful for JD.com, whose average operating margin of 3.9% last year ranks among the lowest for Chinese tech megacaps.

“While JD.com is making strong inroads, declaring 10 million daily orders weeks ago, the achievement came on the back of very heavy user subsidies and waiving commissions for some merchants,” said June Lui, a portfolio manager at Polen Capital HK Limited. “It’s questionable if JD.com can sustain this type of aggressiveness, and there will be an impact on its profitability.”