Investors with a lot of money to spend have taken a bullish stance on Reddit RDDT.
And retail traders should know.
We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with RDDT, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for Reddit.
This isn't normal.
The overall sentiment of these big-money traders is split between 75% bullish and 25%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $106,000, and 7, calls, for a total amount of $251,866.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $55.0 to $110.0 for Reddit over the recent three months.
Analyzing Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Reddit's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Reddit's substantial trades, within a strike price spectrum from $55.0 to $110.0 over the preceding 30 days.
Reddit 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| RDDT | PUT | SWEEP | BULLISH | 10/18/24 | $6.35 | $5.3 | $5.3 | $55.00 | $106.0K | 263 | 6 |
| RDDT | CALL | TRADE | BULLISH | 08/16/24 | $5.3 | $5.3 | $5.3 | $70.00 | $53.0K | 1.6K | 111 |
| RDDT | CALL | TRADE | BULLISH | 08/16/24 | $3.25 | $3.1 | $3.25 | $80.00 | $48.7K | 2.4K | 109 |
| RDDT | CALL | SWEEP | BULLISH | 08/16/24 | $3.3 | $3.0 | $3.24 | $80.00 | $32.9K | 2.4K | 414 |
| RDDT | CALL | SWEEP | BEARISH | 08/16/24 | $3.3 | $3.1 | $3.25 | $80.00 | $32.5K | 2.4K | 9 |
About Reddit
Reddit Inc is engaged in providing internet content. The company provides online services that include gaming, sports, business, crypto, television and others.
After a thorough review of the options trading surrounding Reddit, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Reddit's Current Market Status
- With a trading volume of 944,775, the price of RDDT is up by 0.65%, reaching $64.03.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 59 days from now.
Professional Analyst Ratings for Reddit
In the last month, 1 experts released ratings on this stock with an average target price of $75.0.
- Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Reddit with a target price of $75.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Reddit options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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