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Earnings flood from China's stocks: Is a turnaround on the horizon?
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PDD Sees Bulls Pour Millions of Dollars Into Call Options After Tepper Boosts Stake

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Luzi Ann Santos joined discussion · Nov 15 15:15
$PDD Holdings (PDD.US)$ saw bulls pour millions of dollars into call options after billionaire David Tepper's Appaloosa Management boosted its stake in the parent company of online retailer Temu.
Appaloosa added 3.36 million PDD American depositary receipts to its portfolio, taking its stake in the company to 456.7 million ADRs as of Sept. 30, according to Bloomberg data from the investment firm's 13F filing with the Securities and Exchange Commission. That position was valued at $714.5 million.
On Friday afternoon an active buyer paid a $2.91 million premium for call options that gives the holders the right to buy 909,400 PDD ADRs at $119 each by the end of next week. That's the biggest, unusual options trade posted that day.
Source: moomoo mobile app
Source: moomoo mobile app
(To see PDD's options chain, click here. For the US options market page, click here.)
In early May, PDD climbed to the highest since 2021 on optimism that China's stimulus could help accelerate the Asian country's economic recovery. That rally fizzled amid investor worries that the measures won't be enough to bolster growth.
On Friday, the ADRs rose 1.7% after government data showed China retail sales grew 4.8% in October, fueling optimism that the stimulus are starting to boost consumer confidence. That's the fastest pace of growth in retail sales in eight months, surpassing all the forecasts of economists, according to Bloomberg.
Even technical indicators tracked by moomoo are leaning positive on PDD. Eleven of 15 technical indicators tracked by moomoo are signaling that the stock is still oversold and the trend could be turning bullish.
Source: moomoo mobile app
Source: moomoo mobile app
Another unusual trade posted Friday afternoon was for $2.69 million in premium paid for call options that gives the holders the right to buy 300,000 PDD ADRs at $115 by Jan. 15, 2025, exchange data tracked by moomoo showed.
The positive sentiment seen in the ADR's price contrasts with the latest capital trend data tracked by moomoo. Outflows outpaced inflows by $25 million, the latest exchange data show.
Source: moomoo mobile app
Source: moomoo mobile app
Even Bloomberg's aggregated data on positions held by hedge funds, pension funds, sovereign wealth funds and other institutional investors showed a net reduction in their combined holdings in PDD by 9.16 million ADRs.
The total was based on 7,402 13F filings submitted to the Securities and Exchange Commission and tallied by Bloomberg as of 3:46 p.m. Friday.  Still, their combined holdings stood at 525 million PDD ADRs, valued as of Sept. 30 at $50.2 billion.
Still, the institutional investors that hold the biggest stake in the company continued to boost their holdings, data showed.
Source: moomoo desktop app
Source: moomoo desktop app
Share your thoughts on PDD and other Chinese stocks in the comments section. And if you have a price forecast, please vote below.



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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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