PDD Soars 3% on $920M Trading Volume to 99th Market Activity Rank as Todd Asset and Call Options Drive Rally

PDD Holdings (PDD) surged 3.00% on August 12, 2025, with a trading volume of $0.92 billion, marking an 83.91% increase from the previous day and ranking 99th in market activity. The rally was fueled by a 16.3% stake increase by Todd Asset Management in Q1, which now owns $29.8 million worth of shares. Options trading activity spiked, with heavy call buying on $115–$123 strike prices, including 94,946 shares traded on the $118 call contract.

Technical indicators suggest a mixed outlook. The stock’s RSI of 44.68 and bearish MACD histogram hint at near-term volatility, while the 200-day average of $109.70 remains a key support level. Aggressive call options on $115–$118 strikes reflect bullish positioning, though high theta decay and gamma sensitivity indicate potential risks if the rally stalls. The KraneShares 2x Long PDD ETF (KPDD) gained 6.55% alongside the stock’s move.

Backtest data reveals PDD’s historical performance following a 3% intraday gain shows a 51.62% 3-day win rate, 52.98% 10-day win rate, and 56.73% 30-day win rate. Average returns were 0.34%, 1.19%, and 3.76% respectively, with a maximum observed return of 8.04% at 59 days. This suggests continued positive momentum is likely if the breakout above $116.80 holds.