Today’s options flow highlights a surge of notably large bullish activity centered around PDD’s $95 Call options, with particular attention on contracts expiring November 21st, 2025. The intraday traded volume for this strike reached an impressive 9,675 contracts. Compared to an already sizable open interest of 14,497, Volume/Open Interest (V/OI) ratio stood at approximately 0.67. While this ratio alone doesn’t signal excessive activity, it still reflects substantial fresh positioning entering the market.
Roughly $6.5 million in premiums was deployed into these calls. All executed transactions were Sweep orders, a method typically used by institutional traders to capture liquidity quickly. This pattern of order flow strongly suggests deliberate and aggressive accumulation, likely by market participants who are anticipating a meaningful upward movement in PDD’s stock price in the coming months. Given the strategic nature of the trades and the scale of the investment, this activity may serve as a forward-looking signal of institutional conviction in a bullish outlook for PDD heading into year-end.
Volume and Open Interest Data
Taking a look at yesterday’s and today’s trading activity shows strong evidence of aggressive bullish positioning in PDD’s $95 Call options expiring November 21, 2025. On May 27th, 2025, an unusually high volume of 28,157 contracts traded while the open interest (OI) remained at only 425. This suggests that these were largely opening positions. The following day, open interest surged by 14,072 contracts to an accumulated 14,497 This confirms that a substantial portion of the previous day’s trades were newly initiated long positions, not merely intra-day flips or exits.
Though May 28th saw a drop in volume to 9,777 contracts, it still reflects elevated activity well above typical levels. At the same time, the contract price pulled back from $17.75 to $14.17, while implied volatility (IV) slightly dipped from 45.43% to 43.58%. These movements possibly indicate some cooling after the initial burst. Overall, the data signals institutional-sized bullish bets entering the market, likely reflecting confidence in PDD’s upside over the medium term.
Trade Side Distribution
The trade side distribution for the PDD $95 Call options expiring November 21, 2025 reflects a strong bullish bias in order flow. A dominant portion of trades occurred above the ask price, signaling traders’ rush to get their orders filled. According to the distribution, a significant 59% of the total premium—$6.5 million—was executed above the ask, a clear signal of urgency and conviction from buyers. This is typically interpreted as institutional or smart money aggressively entering the trade.
An additional 14% ($1.6 million) was filled at the ask, further supporting the bullish sentiment. Meanwhile, 26% of trades ($2.9 million) occurred below the ask, suggesting some participants may have been profit-taking or strategically entering at slight discounts. Notably, no trades occurred at the bid or mid-point, which rules out passive selling or market-neutral strategies. Overall, this distribution confirms strong directional intent toward the upside, with the vast majority of premium spent in ways consistent with high-conviction call buying behavior.
More Notable Options Trades Observed
Bullish sentiment on PDD extended beyond the $95 strike, with two large call option trades spotted today at the $100 strike, expiring December 19, 2025. Both were executed at the ask price ($13.90), signaling aggressive buying. The trades—1,671 and 2,000 contracts—amounted to a $5.1 million premium and were classified as Sweep orders, indicating urgency and likely institutional participation. Volume spiked to 22,362, against open interest of 23,597, reflecting notable new activity. With the spot price just below the strike, these out-of-the-money calls suggest a bullish bet on a year-end rally.
What’s Happening with PDD
PDD Holdings recently reported a significant decline in its financial performance for the first quarter of 2025. Net profit dropped by 47% year-over-year to approximately $2.03 billion, missing analyst expectations. This downturn is attributed to escalating U.S.-China trade tensions, including the elimination of the “de minimis” tariff exemption, which previously allowed duty-free imports of low-value packages into the U.S.
In response, Temu raised prices and shifted focus to U.S.-based warehousing, impacting its price competitiveness. Domestically, PDD faced intensified competition from rivals like Alibaba and JD.com. Despite these challenges, the company reported a 10% increase in revenue to $13.18 billion, marking its slowest growth since early 2022. PDD plans to invest over $13 billion in merchant support over the next three years to bolster its platform’s sustainability amid these headwinds.
About PDD
PDD Holdings is a multinational commerce group best known for operating Pinduoduo and Temu, two major e-commerce platforms. Pinduoduo, based in China, pioneered the concept of social commerce, encouraging users to form group-buying teams to access lower prices, primarily for agricultural and consumer goods. Temu, its international arm launched in 2022, targets global markets—especially the U.S.—offering ultra-low-cost products through a direct-from-manufacturer model.
PDD Holdings leverages a data-driven supply chain and a vast network of manufacturers to deliver aggressive pricing, aiming to democratize access to quality goods. The company is headquartered in Dublin, Ireland, and remains a key player in the global e-commerce landscape.
Analyst Ratings
| Analyst Firm | Rating | Updated Date |
|---|---|---|
| CFRA | ★★ (2 Stars) | 05/25/2025 |
| Market Edge | Long | 05/15/2025 |
| Argus | No data | — |
| Morningstar | ★★★ (3 Stars) | 04/25/2025 |
| LSEG | Outperform | 05/25/2025 |
| Schwab Equity Ratings | No data | — |
Analyst ratings for PDD Holdings reveal a divergent outlook among major research firms. On the cautious side, CFRA assigns a 2-star rating, indicating a bearish stance, while Market Edge suggests moving from “Neutral from Avoid” to “Long,” reflecting growing confidence.
LSEG (formerly Refinitiv) gives PDD an “Outperform” rating, suggesting strong potential relative to the market. In contrast, Morningstar provides a more neutral 3-star rating, indicating the stock is fairly valued. No current data is available from Argus or Schwab Equity Ratings. Overall, the ratings reflect a mixed sentiment, with some institutions signaling cautious optimism amid broader market or company-specific uncertainties.
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Disclaimer: Options trading involves significant risk and is not suitable for all investors. You may lose the entire investment, and certain strategies may result in losses exceeding the initial amount invested. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice. Always consult a financial or tax advisor before making investment decisions.
