Reddit Unusual Options Activity

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 13 uncommon options trades for Reddit.

This isn't normal.

The overall sentiment of these big-money traders is split between 53% bullish and 30%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $466,690, and 11 are calls, for a total amount of $796,210.

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Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $100.0 to $155.0 for Reddit over the recent three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Reddit's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Reddit's whale activity within a strike price range from $100.0 to $155.0 in the last 30 days.

Reddit Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

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.

In light of the recent options history for Reddit, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of Reddit

• With a volume of 1,740,900, the price of RDDT is up 1.14% at $111.31.
• RSI indicators hint that the underlying stock may be approaching oversold.
• Next earnings are expected to be released in 53 days.

What Analysts Are Saying About Reddit

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $180.6.

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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. * Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $220. * An analyst from Guggenheim has decided to maintain their Buy rating on Reddit, which currently sits at a price target of $170. * An analyst from Wells Fargo persists with their Overweight rating on Reddit, maintaining a target price of $158. * Maintaining their stance, an analyst from Raymond James continues to hold a Strong Buy rating for Reddit, targeting a price of $200. * An analyst from Citizens Capital Markets persists with their Market Outperform rating on Reddit, maintaining a target price of $155.

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.