Reddit Unusual Options Activity - Reddit (NYSE:RDDT)

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 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 24 uncommon options trades for Reddit.

This isn't normal.

The overall sentiment of these big-money traders is split between 41% bullish and 50%, bearish.

Out of all of the special options we uncovered, 16 are puts, for a total amount of $1,452,537, and 8 are calls, for a total amount of $447,850.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $37.5 and $52.5 for Reddit, spanning the last 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 $37.5 to $52.5 over the preceding 30 days.

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	PUT	SWEEP	BULLISH	08/16/24	$2.85	$2.67	$2.67	$40.00	$249.3K	96	2
RDDT	PUT	SWEEP	BULLISH	08/16/24	$2.5	$2.49	$2.5	$40.00	$233.8K	96	3.4K
RDDT	PUT	SWEEP	BULLISH	08/16/24	$1.33	$1.31	$1.33	$37.50	$205.7K	35	1.4K
RDDT	PUT	SWEEP	BULLISH	08/16/24	$2.85	$2.66	$2.66	$40.00	$167.8K	96	1.7K
RDDT	CALL	TRADE	BEARISH	01/16/26	$17.8	$17.5	$17.5	$47.50	$157.5K	65	50

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

Currently trading with a volume of 1,991,897, the RDDT's price is down by -0.66%, now at $51.06.
RSI readings suggest the stock is currently may be approaching overbought.
Anticipated earnings release is in 108 days.

What Analysts Are Saying About Reddit

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $54.0.

An analyst from JMP Securities downgraded its action to Market Outperform with a price target of $53.
An analyst from Loop Capital has revised its rating downward to Buy, adjusting the price target to $55.
An analyst from JP Morgan has revised its rating downward to Neutral, adjusting the price target to $47.
Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on Reddit with a target price of $65.
In a cautious move, an analyst from Roth MKM downgraded its rating to Buy, setting a price target of $50.

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.

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