To The Moon

$PDD Holdings Inc(PDD)$ Recent Highlights

• Over the past week, key news driving $PDD$ stock includes a major earnings beat, Temu’s overseas expansion, the iPhone 17 subsidy campaign, and a broad recovery across China’s e-commerce sector.

• Q2 earnings surprised to the upside, with $PDD$ posting strong profitability despite tariff headwinds and intensifying competition at home.

• Goldman Sachs reports Temu’s US GMV rebounded in August, with monthly active users up 20% month-over-month.

• China’s August E-commerce Logistics Index hit 112.3, up for a sixth straight month, signaling stronger consumer demand and effective platform promotions.

• $PDD$ launched the iPhone 17 series with a massive subsidy—up to 1,000 RMB off—spiking short-term sales.

Market Take

• $PDD$ is showing a robust uptrend.

• Current valuation is 14.42x earnings, below its historical average of 15.64x—leaving room for further upside.

• Implied target price is $148$, based on a 17x 2025 forward P/E.

• Momentum is strong, but keep an eye on technical resistance in the $135–140$ range.

Trading Strategy

• With the stock testing resistance but still showing upside, selling out-of-the-money puts is a logical bullish play.

• If you already hold $PDD$ shares, you can enhance yield by selling out-of-the-money covered calls during this phase.

Example Strikes & Expirations

• Covered Call: $PDD 20250919 138.0 CALL$  (86% win rate)

• Sell Put: $PDD 20250926 126.0 PUT$  (83% win rate)

Strategy Details

• Covered Call on PDD:
  Hold 100 shares of $PDD$ and sell 1 contract of the $PDD 20250919 138.0 CALL$ .
  You collect the premium upfront. If $PDD$ stays below $138$ at expiry, the call expires worthless and the premium is yours. If $PDD$ closes above $138$, you keep the premium and your 100 shares are called away at $138$.

• Sell Put on PDD:
  Selling the $PDD 20250926 126.0 PUT$  requires a minimum margin of around $2,878$ (subject to market changes).
  If $PDD$ is above $126$ at expiry, the put expires worthless and the premium is your profit. If $PDD$ closes below $126$, you keep the premium but will be assigned 100 shares at an effective cost of $126$ minus the premium received.