PDD is headed for its largest daily percentage drop ever
PDD Holdings Inc (NASDAQ:PDD) stock is headed for its largest daily percentage drop ever, down 27.2% at $101.75 at last glance, after the China-based e-commerce name announced disappointing second-quarter results and warned of a revenue slowdown.
Gapping to its lowest levels since November, the stock is down roughly 30% since the start of the year. Plus, PDD just moved below its 320-day moving average for the first time since May 2023.
Options traders are blasting the Temu parent in response. So far, 133,000 calls and 155,000 puts have crossed the tape, which is 4.3 times the overall average daily options volume already. The weekly 8/30 95-strike put is the most popular, with new positions being bought to open there.
This bearish-leaning sentiment represents a shift in the options pits, per PDD's 50-day call/put volume ratio of 3.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 91% of readings from the past year, meaning calls were picked up at a much faster-than-usual rate over the last 10 weeks.