Pinduoduo's financial report is coming tomorrow, how to plan it?

$Pinduoduo (PDD) $Planned inAhead of U.S. Stock Market Open on Tuesday, November 18, 2025, announced as of September 30, 2025Q3 Unaudited Financial Report。 Analysts generally believe that the third quarter performance showedMixed signal: Revenue is expected to continue to grow, but earnings may decline year-over-year.

Revenue in the third quarter of 2025 is expected to be 108.73 billion yuan, a year-on-year increase of 9.44%; Earnings per share are expected to be 14.890 yuan, a year-on-year decrease of 11.95%.

Analyst ratings also reflect this "double signal": Five of the institutions maintain a "buy" rating, while ten have a "hold" recommendation, with an average price target of $137.82. Notably, Barclays and Macquarie raised their price targets to $165.00 each, showing optimistic expectations for PDD's long-term growth potential. However, New Street Research downgraded its rating to "neutral" with a price target of $120.00, highlighting short-term uncertainty.

Pinduoduo announced its Q2 unaudited financial report on August 25, 2025. Total revenue increased by about 7%, but operating profit fell by 21%. The main gap comes from a large amount of eco-investment and merchant support and international expansion expenditures, including a RMB 100 billion merchant support plan, including a RMB 10 billion fee reduction plan and new logistics solutions for remote areas.

InNovember 14, 2025，PDD, PDD HoldingsStock price falls2.62%, the closing price reflects the complexity and differentiation of market sentiment. Despite the decline, the stock heldHigh trading volume of $1.34 billion, an increase from the previous day62.41%, ranking first in market activity66 bits。 The surge in trading volume shows a significant rise in investor interest, which may be in line with the market's interest in the companyQ3 2025 Earnings (Scheduled for November 18)Related to expectations.

1. Strategy structure

Investors build a on the Pinduoduo (PDD)Bear Call Spread Bear Call Spread, consisting of two call options with the same expiration date:

SellLower Strike Price Call: K ₁ =137, premium revenue$2.24

BUYHigher strike price Call: K ₂ =141, premium expenditure$1.49

Investors limit potential losses by selling lower strike price Call and buying higher strike price Call while capturing net premium income. The strategy is inPinduoduo stock holds at or below $137When obtaining maximum benefits, it belongs toBearish bias, limited gains, limited risksCombination strategy.

Initial net income

Net premium revenue = revenue from selling Call − expense from buying Call = 2.24 − 1.49 =$0.75/Share

Corresponding total income (1 contract = 100 shares): 0.75 × 100 =$75/contract

This part of the net income is available to investors when they open a positionMaximum potential profit。

3. Maximum profit

If Pinduoduo expiration price≤ US $137, neither call option will be exercised, and investors retain all net premium.

• Maximum profit = $0.75/share

• Corresponding total profit =$75/contract

4. Maximum loss

If Pinduoduo matures stock price≥ $141, both Calls were exercised, and the portfolio suffered the maximum spread loss.

Spread width = 141 − 137 =$4

Maximum Loss = Spread − Net Income = 4 − 0.75 =$3.25/share

Corresponding total loss: 3.25 × 100 =$325/contract

5. Break-even point

Breakeven point = lower strike price + net income = 137 + 0.75 =$137.75

Hence:

• WhenPDD ≤ $137.75When investors make profits

• WhenPDD > $137.75When investors start to lose money

6. Risk and return characteristics

• Maximum gain: $75/contract

• Maximum loss: $325/contract

• Profit/loss ratio: approximately 1: 4.33

• Applicable scenario: Investors expect Pinduoduo price to fall or consolidate below $137

• Strategy positioning: Bearish to Neutral with limited risk and limited returns

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