Feb. 20 at 12:16 AM
$PDD action is wild
Over
$100M in deep ITM puts this week, expiring Friday
Stock barely moved but this flow is heavy on downside protection
Last 5 days, 96% of ~
$186M options premium went into puts, mostly 120-130 strikes
That's 4.9x normal flow
Institutions are loading up, making call buying risky short-term
Into today's close, ~
$120M in ask-side puts with high implied vols
Big risk of volatility spike near
$100
Stock is only -0.94% today, +2.13% over 5 days
No fresh news so this feels more like hedging than a downtrend
Wait for a clear break below $