Q2 STOCKS TO BUY

China-Based E-Commerce Stock Hits Annual Highs After Earnings

Options volume is running at four times the intraday average

Deputy Editor
Nov 28, 2022 at 10:08 AM
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China-based e-commerce platform Pinduoduo Inc (NASDAQ:PDD) is reaping the benefits of the country's zero-Covid policy, beating third-quarter top- and bottom-line estimates as consumers move to shop online amid increased restrictions. Despite protests erupting in China and dragging down U.S.-listed shares of Chinese firms, PDD was last seen 13.7% higher to trade at $74.76.

Pinduoduo stock is trading at an annual high at the open, and could log its first close above the $72 level since Sept. 2. Today's rise also put the equity back above its year-over-year breakeven level, and increased PDD's year-to-date lead to 28.9%.

Options traders are taking notice of Pinduoduo stock's pop, with total options volume running at four times the amount typically seen at this point. So far, the most popular contract is the weekly 12/02 80-strike call.

 

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