PDD is higher after China's cyberspace regulator denied issuing new guidelines for tech
China-based tech stocks are rising today, after China's cyberspace regulator denied issuing new guidelines requiring internet giants to seek approval for new investments and fundraising. A document detailing such guidelines had been circulating on social media. One of the tech alternative dispute resolution (ADR) names getting a boost today is agricultural e-commerce stock Pinduoduo Inc (NASDAQ:PDD), up 6.1% to trade at $68.27.
PDD has been climbing on the charts since its Jan. 6 annual low of $47.67, closing higher after eight of its last nine sessions of trading. Today's pop has the stock breaking above its 50-day moving average, which served as pressure at the $95 level in November. Year-to-date, the equity is already up 18.1%.
Options traders are chiming in on Pinduoduo stock amid the positive price action, with options volume running at double the intraday average. So far, 22,000 calls and 13,000 puts have crossed the tape. The January 70 call is the most popular, followed by the weekly 2/4 80-strike call, with new positions being opened at both.
An unwinding of pessimism in the options pits could be giving the stock a boost, as PDD's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all other readings from the past year.
Plus, there is plenty of room for optimism amongst analysts. Of the eight in coverage, four carry a tepid "hold" rating.