Behind the Scenes of Reddit's Latest Options Trends

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 37 uncommon options trades for Reddit.

This isn't normal.

The overall sentiment of these big-money traders is split between 51% bullish and 35%, bearish.

Out of all of the special options we uncovered, 20 are puts, for a total amount of $2,831,782, and 17 are calls, for a total amount of $818,447.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $55.0 to $270.0 for Reddit over the recent three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Reddit stands at 1073.53, with a total volume reaching 10,062.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Reddit, situated within the strike price corridor from $55.0 to $270.0, throughout the last 30 days.

Reddit Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

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.

Having examined the options trading patterns of Reddit, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Current Position of Reddit

• With a trading volume of 6,648,803, the price of RDDT is down by -11.51%, reaching $111.11.
• Current RSI values indicate that the stock is may be approaching oversold.
• Next earnings report is scheduled for 68 days from now.

What Analysts Are Saying About Reddit

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $165.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Redburn Atlantic downgraded its action to Sell with a price target of $75. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Reddit, targeting a price of $220. * An analyst from Raymond James has decided to maintain their Strong Buy rating on Reddit, which currently sits at a price target of $200.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Reddit with Benzinga Pro for real-time alerts.