27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Investors with a lot of money to spend have taken a bearish stance on PDD Holdings (NASDAQ:PDD).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with PDD, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 9 uncommon options trades for PDD Holdings.
This isn't normal.
The overall sentiment of these big-money traders is split between 44% bullish and 55%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $470,775, and 2 are calls, for a total amount of $59,389.
Expected Price Movements
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $110.0 to $135.0 for PDD Holdings over the recent three months.
Insights into Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for PDD Holdings's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across PDD Holdings's significant trades, within a strike price range of $110.0 to $135.0, over the past month.
PDD Holdings Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| PDD | PUT | SWEEP | BEARISH | 05/10/24 | $16.0 | $15.95 | $16.0 | $135.00 | $160.0K | 0 | 0 |
| PDD | PUT | SWEEP | BULLISH | 05/10/24 | $14.9 | $14.2 | $14.2 | $133.00 | $71.0K | 150 | 100 |
| PDD | PUT | SWEEP | BEARISH | 05/10/24 | $14.1 | $13.65 | $14.1 | $133.00 | $70.5K | 150 | 150 |
| PDD | PUT | SWEEP | BEARISH | 05/10/24 | $15.25 | $14.95 | $15.25 | $133.00 | $65.5K | 150 | 0 |
| PDD | PUT | SWEEP | BEARISH | 05/10/24 | $15.1 | $14.65 | $15.1 | $133.00 | $39.2K | 150 | 58 |
About PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD has built a network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses.
After a thorough review of the options trading surrounding PDD Holdings, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
PDD Holdings's Current Market Status
- Trading volume stands at 80,617, with PDD's price up by 0.31%, positioned at $117.98.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 45 days.
Professional Analyst Ratings for PDD Holdings
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $181.2.
- Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for PDD Holdings, targeting a price of $190.
- An analyst from Barclays has decided to maintain their Overweight rating on PDD Holdings, which currently sits at a price target of $178.
- An analyst from Jefferies has decided to maintain their Buy rating on PDD Holdings, which currently sits at a price target of $161.
- An analyst from Benchmark persists with their Buy rating on PDD Holdings, maintaining a target price of $220.
- An analyst from Jefferies upgraded its action to Buy with a price target of $157.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for PDD Holdings with Benzinga Pro for real-time alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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