52-Week High Alert: Trading today’s movement in REDDIT INC $RDDT

Quantchabot has detected a new Bull Call Spread trade opportunity for REDDIT INC (RDDT) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RDDT was recently trading at $214.27 and has an implied volatility of 74.96% for this period. Based on an analysis of the options available for RDDT expiring on 7-Feb-2025, there is a 34.83% likelihood that the underlying will close within the analyzed range of $214.37-$231.34 at expiration. In this scenario, the average linear return for the trade would be 10.18%.

52 week high: REDDIT INC recently reached a new 52-week high at $215.30. RDDT had traded in the range $37.35-$208.62 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if RDDT maintains its current direction and does not revert back to pricing on the bearish side of $214.27 on 7-Feb-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if REDDIT INC closes at or above $212.89 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 53.71% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.


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