What Are Whales Doing With Pinduoduo

Someone with a lot of money to spend has taken a bearish stance on Pinduoduo PDD.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, 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 this whale just did?

Today, Benzinga's options scanner spotted 13 uncommon options trades for Pinduoduo.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 69%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $243,309, and 7 are calls, for a total amount of $405,811.

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 $35.0 to $130.0 for Pinduoduo over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Pinduoduo options trades today is 1607.55 with a total volume of 907.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Pinduoduo's big money trades within a strike price range of $35.0 to $130.0 over 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 TRADE BEARISH 01/19/24 $35.00 $141.5K 21 123
PDD CALL SWEEP BEARISH 04/14/22 $45.00 $102.9K 918 11
PDD PUT SWEEP NEUTRAL 04/14/22 $60.00 $60.2K 1.7K 30
PDD CALL TRADE BEARISH 01/19/24 $40.00 $50.9K 59 48
PDD PUT SWEEP BULLISH 03/11/22 $49.50 $49.6K 85 59

Where Is Pinduoduo Standing Right Now?

  • With a volume of 7,473,626, the price of PDD is down -2.25% at $40.34.
  • RSI indicators hint that the underlying stock may be oversold.
  • Next earnings are expected to be released in 14 days.

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 are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.

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Posted In: OptionsMarketsBZI-UOA
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