PDD Holdings ( (PDD) ) has fallen by -10.08%. Read on to learn why.
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PDD Holdings shares lost momentum over the past week, falling 10.08% as options traders sent mixed but increasingly cautious signals ahead of the company’s March 19 earnings report. While the stock recently traded around the low $120s, options activity showed heavy positioning for both potential upside and downside, adding to short-term volatility and uncertainty.
On the bearish side, put trading spiked to roughly twice normal levels, with more than 66,000 contracts changing hands and heavy interest in near-term downside strikes such as the January weekly $102 and March $110 puts. The put/call ratio climbed as high as 1.52 at one point, and demand for downside protection steepened put-call skew, suggesting that a growing group of traders is bracing for weakness or a negative surprise around earnings.
At the same time, there were notable bullish bursts: call volume jumped to about five times typical levels on another day, focused on the $120 calls expiring in January and February, and implied volatility ticked up as traders paid more for exposure to a big move. This tug-of-war between aggressive put buyers and opportunistic call buyers, combined with low overall volatility readings relative to the past year, has left PDD Holdings’ share price under pressure as investors debate whether recent gains were overdone or if Wall Street is still underestimating the stock’s long-term potential.