Investors with a lot of money to spend have taken a bearish 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 25% bullish and 50%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $29,280, and 7, calls, for a total amount of $287,100.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $45.0 to $70.0 for Reddit over the recent three months.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Reddit's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Reddit's significant trades, within a strike price range of $45.0 to $70.0, over the past month.
Reddit Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| RDDT | CALL | TRADE | NEUTRAL | 08/09/24 | $5.45 | $5.0 | $5.25 | $59.00 | $57.7K | 16 | 224 |
| RDDT | CALL | TRADE | BEARISH | 11/15/24 | $11.8 | $11.4 | $11.4 | $60.00 | $57.0K | 41 | 98 |
| RDDT | CALL | TRADE | BEARISH | 08/09/24 | $5.35 | $4.8 | $4.8 | $60.00 | $48.0K | 285 | 140 |
| RDDT | CALL | TRADE | BULLISH | 08/16/24 | $2.6 | $2.54 | $2.6 | $70.00 | $39.0K | 1.9K | 189 |
| RDDT | CALL | SWEEP | BEARISH | 08/09/24 | $13.55 | $13.1 | $13.1 | $45.00 | $32.7K | 5 | 49 |
About Reddit
Reddit Inc is engaged in providing internet content. The company provides online services that include gaming, sports, business, crypto, television and others.
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
- With a trading volume of 1,892,650, the price of RDDT is down by -1.55%, reaching $56.69.
- Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
- Next earnings report is scheduled for 1 days from now.
Professional Analyst Ratings for Reddit
In the last month, 5 experts released ratings on this stock with an average target price of $74.2.
- In a positive move, an analyst from Loop Capital has upgraded their rating to Buy and adjusted the price target to $75.
- Maintaining their stance, an analyst from JMP Securities continues to hold a Market Outperform rating for Reddit, targeting a price of $84.
- Consistent in their evaluation, an analyst from JP Morgan keeps a Neutral rating on Reddit with a target price of $67.
- An analyst from Loop Capital has revised its rating downward to Hold, adjusting the price target to $75.
- An analyst from Raymond James has decided to maintain their Strong Buy rating on Reddit, which currently sits at a price target of $70.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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