A Closer Look at Reddit's Options Market Dynamics

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 26 uncommon options trades for Reddit.

This isn't normal.

The overall sentiment of these big-money traders is split between 65% bullish and 23%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $100,436, and 23 are calls, for a total amount of $1,056,891.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $60.0 and $180.0 for Reddit, spanning the last three months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Reddit options trades today is 910.5 with a total volume of 2,570.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Reddit's big money trades within a strike price range of $60.0 to $180.0 over the last 30 days.

Reddit Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Reddit

Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines. Reddit generates revenue through advertising, Premium Memberships, and data licensing agreements.

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

Where Is Reddit Standing Right Now?

• With a volume of 2,975,249, the price of RDDT is down -0.01% at $112.1.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 63 days.

What The Experts Say On Reddit

4 market experts have recently issued ratings for this stock, with a consensus target price of $131.25.

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. * Consistent in their evaluation, an analyst from Baird keeps a Neutral rating on Reddit with a target price of $120. * An analyst from Wells Fargo has revised its rating downward to Equal-Weight, adjusting the price target to $115. * An analyst from Seaport Global has elevated its stance to Buy, setting a new price target at $165. * An analyst from RBC Capital has revised its rating downward to Sector Perform, adjusting the price target to $125.

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.