What the Options Market Tells Us About Reddit

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 trades 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 27 uncommon options trades for Reddit.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 33%, bearish.

Out of all of the special options we uncovered, 10 are puts, for a total amount of $787,345, and 17 are calls, for a total amount of $925,229.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $100.0 to $250.0 for Reddit during the past quarter.

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 $100.0 to $250.0 over the preceding 30 days.

Reddit Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Reddit

Reddit Inc is engaged in providing internet content. The company provides online human connections to communities, endless conversation, sports, business, crypto, television, and others. It generates a majority of revenue through the sale of advertising on mobile applications and websites. Other revenue consists of revenue from content licensing, Reddit Premium subscriptions, and products within the user economy.

Following our analysis of the options activities associated with Reddit, we pivot to a closer look at the company's own performance.

Present Market Standing of Reddit

• Currently trading with a volume of 2,321,902, the RDDT's price is down by -6.2%, now at $177.91.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 94 days.

Expert Opinions on Reddit

5 market experts have recently issued ratings for this stock, with a consensus target price of $196.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for Reddit, targeting a price of $185. * An analyst from Wells Fargo has decided to maintain their Overweight rating on Reddit, which currently sits at a price target of $215. * In a cautious move, an analyst from JMP Securities downgraded its rating to Market Outperform, setting a price target of $190. * Consistent in their evaluation, an analyst from JMP Securities keeps a Market Outperform rating on Reddit with a target price of $190. * Maintaining their stance, an analyst from JMP Securities continues to hold a Market Outperform rating for Reddit, targeting a price of $200.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Reddit, Benzinga Pro gives you real-time options trades alerts.