Reddit Options Trader Bets $2.76 Million on a Major Reversal With a 2028 Call

By TrendSpider Editor

A single unusual options contract worth $2,760,000 in premium hit the tape for Reddit, Inc. (RDDT), drawing attention to a bold long-dated bullish wager on the social media platform. The contract targets a $280 strike price, a level that sits near the top of RDDT's 52-week range of $119.27 to $282.9

Reddit Options Trader Bets $2.76 Million on a Major Reversal With a 2028 Call

A single unusual options contract worth $2,760,000 in premium hit the tape for Reddit, Inc. (RDDT), drawing attention to a bold long-dated bullish wager on the social media platform. The contract targets a $280 strike price, a level that sits near the top of RDDT's 52-week range of $119.27 to $282.95, suggesting the buyer is positioning for a significant recovery from current levels. With RDDT trading at $152.65 on Monday, down 0.39% on the session, the stock sits closer to the lower half of its annual range, making this bet a notable expression of longer-term confidence.

Key Drivers of the RDDT Stock Move

• Main Catalyst: One unusual call contract was flagged, struck at $280 with a June 16, 2028 expiration, carrying $2,760,000 in premium. The contract had a size of 1,000 and represented 20% of open interest, indicating this was not a routine hedge but a deliberate directional position with meaningful scale relative to existing activity.
• Bull Case: The $280 strike is just below the 52-week high of $282.95, meaning a buyer at this level is essentially betting RDDT retests and sustains its peak valuation within roughly 22 months. The long expiration gives the position significant time for Reddit's underlying business to deliver the growth needed to justify that price level from the current $152.65.
• Bear Case: RDDT would need to gain more than 83% from its current price of $152.65 just to reach the $280 strike at expiration. The contract is deeply out of the money, and with the stock already down roughly 46% from its 52-week high of $282.95, that journey carries substantial execution risk for the underlying business over the holding period.

The forward setup for RDDT is one of high expectations meeting a bruised chart. The stock has shed nearly half its value from its 52-week peak, and while the long-dated call suggests at least one sophisticated participant sees a path back to those highs by mid-2028, the near-term price action remains under pressure. Reddit continues to navigate its post-IPO trajectory as it works to monetize its massive user base through advertising and data licensing arrangements, including deals tied to AI training data. The two-year runway on this contract implies the buyer is not looking for a quick catalyst but rather a sustained business inflection that the market has not yet priced in at current levels.

RDDT Unusual Options Activity

One unusual contract was flagged in Monday's session, representing the full scope of notable activity:

• Type: Call | Strike: $280 | Expiry: June 16, 2028 | Volume/Size: 1,000 | Open Interest: 20% of existing OI

The single contract accounted for $2,760,000 in total premium, with zero puts flagged alongside it. The absence of any put activity in the unusual flow reinforces that this was a one-sided, directional bullish expression rather than a spread or hedge strategy. The 20% open interest figure confirms the contract added meaningful new exposure relative to what was already outstanding at that strike and expiration.

RDDT Seasonality

Late August has historically represented a quieter period for growth-oriented technology and social media names ahead of the September volatility window, which may explain why a trader opted for a long-dated structure rather than a near-term catalyst play. A June 2028 expiration skips past multiple earnings cycles and potential macro inflection points, giving the position room to breathe through seasonal headwinds.

RDDT Relative Performance

RDDT's 0.39% decline on Monday was modest in absolute terms, but the stock's broader positioning tells a more pronounced story. Trading at $152.65 against a 52-week high of $282.95 means RDDT is down approximately 46% from its peak, underperforming many of its social media and digital advertising peers that have fared better in recovering from last year's broader technology pullback. The stock remains well above its 52-week low of $119.27, suggesting a floor has been established, but the gap to its highs is substantial and has yet to be meaningfully closed.