Looking At Pinduoduo's Recent Unusual Options Activity

Looking At Pinduoduo's Recent Unusual Options Activity

A whale with a lot of money to spend has taken a noticeably bearish stance on Pinduoduo.

Looking at options history for Pinduoduo PDD we detected 14 strange trades.

If we consider the specifics of each trade, it is accurate to state that 35% of the investors opened trades with bullish expectations and 64% with bearish.

From the overall spotted trades, 6 are puts, for a total amount of $390,611 and 8, calls, for a total amount of $427,275.

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 $120.0 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 2890.67 with a total volume of 1,654.00.

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 $55.0 to $120.0 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 BEARISH 01/06/23 $110.00 $99.4K 75 152
PDD PUT SWEEP BEARISH 12/16/22 $86.00 $92.7K 374 509
PDD CALL SWEEP BULLISH 01/20/23 $95.00 $91.6K 6.1K 182
PDD CALL SWEEP BEARISH 01/06/23 $75.00 $82.5K 283 50
PDD PUT SWEEP BEARISH 01/06/23 $110.00 $76.3K 75 0

Where Is Pinduoduo Standing Right Now?

  • With a volume of 3,197,968, the price of PDD is down -0.94% at $90.25.
  • RSI indicators hint that the underlying stock may be overbought.
  • Next earnings are expected to be released in 101 days.

What The Experts Say On Pinduoduo:

  • Citigroup has decided to maintain their Buy rating on Pinduoduo, which currently sits at a price target of $111.
  • Macquarie has decided to maintain their Outperform rating on Pinduoduo, which currently sits at a price target of $122.
  • 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.
  • Barclays has decided to maintain their Overweight rating on Pinduoduo, which currently sits at a price target of $84.

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