There has been a significant bearish position taken on PDD Holdings PDD by someone with a large amount of money to spend. This caught our attention when we saw the big position on the publicly available options history that we track here at Benzinga. It is unclear whether this is an institution or an individual with substantial wealth, but when something of this magnitude occurs with PDD, it often indicates that someone knows something is about to happen.
So how do we know what this influential investor just did? Today, Benzinga's options scanner identified 25 unusual options trades for PDD Holdings. This is not a typical occurrence. The overall sentiment of these high-value traders is divided, with 48% being bullish and 52% being bearish. Out of all the unique options we discovered, 5 are puts, totaling $391,221, and 20 are calls, totaling $1,644,946.
Now, let's discuss the price target. Based on the volume and open interest of these contracts, it seems that whales have been targeting a price range of $65.0 to $155.0 for PDD Holdings over the past three months.
Examining the volume and open interest is a valuable method of conducting due diligence on a stock. This data allows you to monitor the liquidity and interest in PDD Holdings' options for a specific strike price. Below, we can observe the evolution of the volume and open interest for calls and puts within a strike price range of $65.0 to $155.0 over the last 30 days.
Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume PDD CALL TRADE BEARISH 11/17/23 $120.00 $306.0K 94 2.0K PDD CALL TRADE BEARISH 10/20/23 $110.00 $167.0K 7.9K 1.2K PDD CALL SWEEP BULLISH 06/21/24 $65.00 $164.2K 172 40 PDD PUT SWEEP BEARISH 12/15/23 $95.00 $155.7K 1.0K 296 PDD CALL SWEEP BULLISH 12/15/23 $110.00 $152.5K 438 242
Let's take a look at where PDD Holdings currently stands. With a volume of 4,350,412, the price of PDD is up 0.52% at $99.98. RSI indicators suggest that the underlying stock may be overbought. The next earnings release is expected in 70 days.
Here's what the experts have to say about PDD Holdings: Benchmark has decided to maintain their Buy rating with a price target of $140. Barclays has decided to maintain their Overweight rating with a price target of $115. JP Morgan has decided to maintain their Overweight rating with a price target of $120. Bernstein has decided to maintain their Outperform rating with a price target of $120. Goldman Sachs upgraded its action to Buy with a price target of $129.
While options are riskier compared to trading the stock alone, they offer higher profit potential. Serious options traders manage this risk by staying informed, scaling in and out of trades, following multiple indicators, and closely monitoring the markets. If you want to stay updated on the latest options trades for PDD Holdings, Benzinga Pro provides real-time options trade alerts.