Someone with a lot of money to spend has taken a bullish stance on Pinduoduo (NASDAQ: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 26 uncommon options trades for Pinduoduo.
This isn't normal.
The overall sentiment of these big-money traders is split between 61% bullish and 38%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $1,172,653, and 20 are calls, for a total amount of $1,279,458.
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 $27.0 to $50.0 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 1459.35 with a total volume of 13,370.00.
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 $27.0 to $50.0 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 | 04/14/22 | $35.00 | $774.2K | 6.1K | 2.5K |
| PDD | PUT | TRADE | BULLISH | 03/18/22 | $40.00 | $160.3K | 1.5K | 637 |
| PDD | CALL | SWEEP | BEARISH | 06/17/22 | $50.00 | $144.9K | 3.7K | 30 |
| PDD | PUT | SWEEP | BULLISH | 03/18/22 | $40.00 | $132.5K | 1.5K | 1.1K |
| PDD | CALL | SWEEP | BULLISH | 03/18/22 | $30.00 | $128.0K | 3.5K | 385 |
Where Is Pinduoduo Standing Right Now?
- With a volume of 29,739,513, the price of PDD is up 39.03% at $37.97.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 5 days.
What The Experts Say On Pinduoduo:
- JP Morgan downgraded its action to Underweight with a price target of $23
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.
