A whale with a lot of money to spend has taken a noticeably bearish stance on Pinduoduo.
Looking at options history for Pinduoduo (NASDAQ:PDD) we detected 25 strange trades.
If we consider the specifics of each trade, it is accurate to state that 44% of the investors opened trades with bullish expectations and 56% with bearish.
From the overall spotted trades, 11 are puts, for a total amount of $425,724 and 14, calls, for a total amount of $1,284,861.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $55.0 to $100.0 for Pinduoduo over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Pinduoduo's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Pinduoduo's whale activity within a strike price range from $55.0 to $100.0 in the last 30 days.
Pinduoduo Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| PDD | CALL | SWEEP | BEARISH | 12/16/22 | $85.00 | $462.2K | 96 | 864 |
| PDD | CALL | SWEEP | NEUTRAL | 01/20/23 | $100.00 | $265.6K | 6.9K | 751 |
| PDD | CALL | TRADE | BULLISH | 01/20/23 | $100.00 | $93.9K | 6.9K | 1.0K |
| PDD | CALL | TRADE | BULLISH | 09/23/22 | $70.00 | $74.0K | 1.4K | 207 |
| PDD | CALL | SWEEP | BEARISH | 09/23/22 | $78.00 | $64.5K | 115 | 821 |
Where Is Pinduoduo Standing Right Now?
- With a volume of 4,008,286, the price of PDD is up 1.06% at $70.5.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 74 days.
What The Experts Say On Pinduoduo:
- B of A Securities has decided to maintain their Buy rating on Pinduoduo, which currently sits at a price target of $89.
- Citigroup has decided to maintain their Buy rating on Pinduoduo, which currently sits at a price target of $83.
- HSBC upgraded its action to Buy with a price target of $93
- Macquarie has decided to maintain their Outperform rating on Pinduoduo, which currently sits at a price target of $104.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Pinduoduo, Benzinga Pro gives you real-time options trades alerts.
