Check Out What Whales Are Doing With PDD

Check Out What Whales Are Doing With PDD

Someone with a lot of money to spend has taken a bullish 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.

Today, Benzinga's options scanner spotted 12 options trades for Pinduoduo.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the options we uncovered, 11 are puts, for a total amount of $1,186,621, and there was 1 call, for a total amount of $136,875.

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 $70.0 to $105.0 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 1641.5 with a total volume of 5,516.00.

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 $70.0 to $105.0 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 PUT SWEEP NEUTRAL 12/30/22 $105.00 $209.0K 75 100
PDD PUT SWEEP NEUTRAL 12/30/22 $105.00 $205.5K 75 400
PDD PUT SWEEP BEARISH 12/30/22 $105.00 $203.3K 75 200
PDD CALL TRADE BULLISH 01/20/23 $70.00 $136.8K 6.0K 127
PDD PUT SWEEP BEARISH 12/30/22 $105.00 $100.0K 75 600

Where Is Pinduoduo Standing Right Now?

  • With a volume of 2,490,562, the price of PDD is up 2.59% at $85.91.
  • RSI indicators hint that the underlying stock may be overbought.
  • Next earnings are expected to be released in 108 days.

What The Experts Say On Pinduoduo:

  • Barclays has decided to maintain their Overweight rating on Pinduoduo, which currently sits at a price target of $84.
  • Benchmark has decided to maintain their Buy rating on Pinduoduo, which currently sits at a price target of $112.
  • Morgan Stanley has decided to maintain their Equal-Weight rating on Pinduoduo, which currently sits at a price target of $77.
  • Macquarie has decided to maintain their Outperform rating on Pinduoduo, which currently sits at a price target of $122.
  • Citigroup has decided to maintain their Buy rating on Pinduoduo, which currently sits at a price target of $111.

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.

Posted In: BZI-UOAOptionsMarkets