Options Play of the Day: Reddit (RDDT) 

Why We’re Watching

Reddit continues to trade with volatility that rewards patient traders. The company isn’t just about ads anymore data licensing deals with Google and OpenAI are starting to show up as high margin growth drivers. Pair that with 78% revenue growth last quarter and 110M+ daily active users, and you’ve got a stock the Street can’t ignore.

On the chart, Reddit tagged $239.37 on 09/03 before closing back at $223.14. That rejection confirms $239–$253 as resistance, while the $212–$215 zone is where demand keeps showing up. Traders should be watching that level like a hawk.

The Play

Primary Contract:

• Option: November 21st $240 Call
• Open Interest: 2,108 contracts
• Current Cost: ~$2,400 per contract
• Probability ITM: 36%
• Probability OTM: 63%

Alternative Contract:

Current Cost: ~$3,300 per contract

Option: November 21st $220 Call

Entry Strategy – Patience Wins

Right now, both contracts are priced rich. Don’t chase.

Wait for a 20–30% pullback in premium.

That happens if the stock dips into $215–$212.

At those levels, the $240 call should slide toward $2,100.

The $220 call should drop closer to $2,600.

Demand Zones on the Chart:

$209–$205 on the stock looks like heavy demand.

But knowing how the market works, buyers will likely step in earlier, around $210–$215.

Execution:

Place limit orders only — never pay full ask.

Start with partial size on the first dip, save ammo in case it slips deeper.

Profit Potential

• Bounce back to $239: Options expand 40–60%.
• Retest of $253 High: Contracts can double.
• Breakout Beyond $253: Stock could sprint to $275, and calls reprice explosively.

The Takeaway

The trade is about discipline. Don’t chase RDDT calls at inflated premiums.

• Wait for the stock to retrace to $215–$212.
• Load the November 21st $240 call near $2,100 premium.
• For more aggressive traders, step into the $220 call if it drops under $2,600.

The demand zones are clear, and the patience game is where traders get paid.