Reddit Stock Sees $1.6 Million Bearish Put Contract as Shares Sit Near 52-Week Lows

May 19, 2026

By TrendSpider Editor

Reddit Stock Sees $1.6 Million Bearish Put Contract as Shares Sit Near 52-Week Lows

A single unusual put contract worth $1,615,400 in premium has appeared in Reddit's options flow, drawing attention to the social media platform as shares trade at $154.89, down 2.58% on the session. The contract targets a $155 strike price, placing it essentially at the money, with expiration set for June 17, 2027, giving the position more than a year of runway. With RDDT trading well off its 52-week high of $282.95 and only modestly above its 52-week low of $94.89, the timing of this bearish bet raises questions about where the stock heads next.

Key Drivers of the RDDT Stock Move

Main Catalyst: One unusual put contract was flagged at the $155 strike expiring June 17, 2027, carrying $1,615,400 in total premium. The open interest on this contract surged 539% above normal, signaling a significant and deliberate position rather than routine hedging activity.
Bull Case: Despite the bearish contract, the $155 strike is essentially at the money, meaning the buyer could simply be hedging an existing long position in RDDT rather than making a directional short bet. The stock remains well above its 52-week low of $94.89, suggesting there is meaningful floor support built into the current price structure.
Bear Case: The 539% open interest spike on a single at-the-money put with over a year until expiration is difficult to dismiss as routine. At $154.89, RDDT has already shed roughly 45% from its 52-week high of $282.95, and a trader paying $1,615,400 in premium for downside protection through mid-2027 may be anticipating further deterioration in the stock's fundamentals or broader sentiment toward high-multiple technology names.

The forward setup for Reddit is complicated by the stock's significant drawdown from peak levels. Sitting closer to the lower half of its 52-week range, RDDT faces a market environment where growth-oriented internet names are under pressure from rate sensitivity and advertising budget uncertainty. The at-the-money placement of this put means the buyer begins profiting if shares slide below $155 before June 2027, a threshold that has now effectively become a line in the sand for traders watching this name. The long-dated nature of the contract also suggests the position is structured to weather near-term volatility rather than express a short-term directional view, adding weight to the idea that whoever placed this trade has a considered, multi-quarter thesis on RDDT's risk profile.

RDDT Unusual Options Activity

Type: Put | Strike: $155 | Expiry: June 17, 2027 | Volume: 410 | Open Interest Change: 539% above normal

This was the only unusual contract flagged in today's session, with zero unusual call contracts reported alongside it, reinforcing the one-sided nature of today's notable options activity.

RDDT Seasonality

Mid-May through June has historically been a mixed period for internet and social media stocks, as first-quarter earnings results are digested and forward guidance becomes the primary valuation driver heading into the summer. A put expiring in June 2027 captures multiple earnings cycles, making it well-positioned to benefit from any sustained fundamental weakness over the next four quarters.

RDDT Relative Performance

RDDT's 2.58% decline on the session places it among the weaker performers in the internet and social media space today. Trading at $154.89, the stock is positioned in the lower half of its 52-week range of $94.89 to $282.95, reflecting a cumulative underperformance relative to the broader technology sector, which has seen some recovery in 2026. Until RDDT can reclaim higher ground in its annual range, the price structure continues to favor caution over aggression on the long side.