Reddit Sees $5.82 Million Call Sweep at $260 Strike as Stock Trades Near 52-Week Lows

By TrendSpider Editor

Reddit, Inc. (RDDT) is drawing significant attention in the options market today, with a single call contract worth $5,820,000 in premium targeting a $260 strike expiring June 2028 dominating an otherwise mixed flow. RDDT shares are trading at $155.10, down 0.63% on the session, and sitting closer t

Reddit Sees $5.82 Million Call Sweep at $260 Strike as Stock Trades Near 52-Week Lows

Reddit, Inc. (RDDT) is drawing significant attention in the options market today, with a single call contract worth $5,820,000 in premium targeting a $260 strike expiring June 2028 dominating an otherwise mixed flow. RDDT shares are trading at $155.10, down 0.63% on the session, and sitting closer to the 52-week low of $119.27 than the 52-week high of $263.50. The total premium across five unusual contracts today reached $5,976,360, with calls accounting for the overwhelming majority of that figure.

Key Drivers of the RDDT Stock Move

• Main Catalyst: Five unusual options contracts were flagged today with a combined total premium of $5,976,360. The standout trade is a deep out-of-the-money call at the $260 strike expiring June 16, 2028, with a size of 2,000 contracts and a premium of $5,820,000. Open interest utilization on that contract sits at just 31%, suggesting this is a significant new position being established.
• Bull Case: The $5.82 million call sweep at $260 is a long-dated, high-conviction bet that RDDT can return to levels near its 52-week high of $263.50 within roughly 20 months. Two additional call contracts at the $172.50 and $157.50 strikes expiring November 13, 2026 also appeared in today's flow, with the $172.50 call showing an extraordinary open interest utilization rate of 1,667%, indicating heavy new positioning relative to existing open interest.
• Bear Case: Not all of today's unusual flow is bullish. Two in-the-money put contracts were flagged: a $177.50 put and a $172.50 put, both expiring November 13, 2026, with open interest utilization of 1,000% and 1,300% respectively. These contracts represent near-term hedging or directional bets that RDDT will remain under pressure well above its current price of $155.10, implying continued downside risk in the weeks ahead.

The forward setup for RDDT is a tale of two timeframes. Near-term options activity reflects genuine uncertainty, with both puts and calls flagging unusual activity into the November expiration just weeks away. The massive long-dated call, however, suggests at least one large participant sees the current price near $155 as a compelling entry point relative to where Reddit could trade in mid-2028. Reddit has been navigating a challenging environment for digital advertising and social media monetization broadly, and any acceleration in its data licensing business or improvements in ad revenue could serve as meaningful catalysts for the kind of recovery the $260 strike call implies.

RDDT Unusual Options Activity

• Contract 1: Put | Strike: $177.50 | Expiry: November 13, 2026 | Size: 17 | OI Utilization: 1,000% | Status: In the Money | Premium: $47,345
• Contract 2: Put | Strike: $172.50 | Expiry: November 13, 2026 | Size: 13 | OI Utilization: 1,300% | Status: In the Money | Premium: $31,395
• Contract 3: Call | Strike: $172.50 | Expiry: November 13, 2026 | Size: 50 | OI Utilization: 1,667% | Status: Out of the Money | Premium: $38,920
• Contract 4: Call | Strike: $157.50 | Expiry: November 13, 2026 | Size: 30 | OI Utilization: 214% | Status: Out of the Money | Premium: $38,700
• Contract 5: Call | Strike: $260.00 | Expiry: June 16, 2028 | Size: 2,000 | OI Utilization: 31% | Status: Out of the Money | Premium: $5,820,000

RDDT Seasonality

October and November have historically been volatile periods for high-growth internet and social media names as third-quarter earnings results and full-year guidance updates reshape expectations heading into year-end. With the November 13, 2026 expiration appearing across four of today's five flagged contracts, traders are clearly positioning around a near-term catalyst window.

RDDT Relative Performance

RDDT is currently trading at $155.10, which represents a position roughly 41% above its 52-week low of $119.27 but approximately 41% below its 52-week high of $263.50. The stock's proximity to the lower half of its annual range, combined with today's modest 0.63% decline, underscores the significant recovery implied by the $260 strike call sweep relative to where shares are trading right now.