The Trade Desk Soars 8%—What’s Fueling This Rally?

• Shares of The Trade Desk (TTD) skyrocket 7.89% to $81.38, surging from a $75.43 close.
• The stock’s meteoric rise stems from its impending addition to the S&P 500, replacing Ansys (ANSS).
• Intraday trading ranges from $80.98 to $86.00, marking a 10% surge from Monday’s close.

The Trade Desk’s inclusion in the S&P 500 has ignited institutional buying, driving shares to multi-week highs. Analysts highlight strategic partnerships and Evercore ISI’s $90 price target as catalysts for further gains.

S&P 500 Inclusion Sparks Surge for The Trade Desk
The Trade Desk’s stock surge is directly tied to its upcoming inclusion in the S&P 500, effective July 18. Replacing Ansys—which is being acquired by Synopsys—has triggered a flood of buying from index-tracking funds and ETFs. The move follows similar momentum seen when Datadog (DDOG) joined the S&P 500 last week, signaling a structural demand shift. Analysts emphasize that this milestone elevates TTD’s visibility among institutional investors, who must rebalance portfolios to reflect the index change.

Technical Bullishness Meets High-Impact Option Opportunities
RSI: 67.41 (Neutral) • MACD: 1.49 (Bullish) • Bollinger Bands: Above Upper Band (77.85) • 30-Day MA: $72.16 (Strong Support) • 200-Day MA: $92.64 (Long-Term Resistance)

The current bullish momentum suggests aggressive buying into the $85–$86 resistance zone. Traders should monitor the $72.25–$72.43 support cluster for a potential pullback.

Top Option Picks:
1. TTD20250725C85 (Call, $85 Strike):
- Delta: 0.3095 (Moderate Bullish Exposure)
- Implied Volatility: 45.29% (Mid-Range)
- Leverage Ratio: 66.70% (High Reward/Pain Ratio)
- Theta: -0.199 (Decent Time Decay)
- Gamma: 0.055 (Responsive to Price Moves)
- Why Buy? This in-the-money option offers asymmetric upside if TTD breaches $85. At a projected $85.45 (5% gain), payoff reaches ~$0.45/share, with liquidity ($907k turnover) ensuring easy execution.

2. TTD20250725C83 (Call, $83 Strike):
- Delta: 0.4203 (Balanced Bullish Exposure)
- Implied Volatility: 44.19% (Stable)
- Leverage Ratio: 44.47% (Solid Risk/Reward)
- Theta: -0.241 (Moderate Time Decay)
- Gamma: 0.0626 (High Sensitivity to Moves)
- Why Buy? Straddles the $83–$85 price band, offering flexibility. A $85.45 target yields ~$2.45/share payoff, with strong turnover ($272k) enabling smooth trades.

Action Hook: Aggressive bulls targeting $90+ should layer into TTD20250725C85 ahead of the S&P rebalance. For cautious players, TTD20250725C83 offers a lower-risk entry into the rally.

Backtest The Trade Desk Stock Performance
The Trade Desk (TTD) experienced a significant boost in its stock performance following a 9% intraday surge. This surge was triggered by the company's announcement of its inclusion in the S&P 500, which took effect prior to the trading start on July 18, 2025. 1. Impact of S&P 500 Inclusion: The announcement of TTD's inclusion in the S&P 500 sparked immediate liquidity inflows, leading to a 9% intraday surge. This was followed by a 15% surge in extended trading, reflecting strong investor confidence in the company's future prospects.2. Financial Outlook: Despite a recent dip in the broader market, TTD's revenue forecast for the upcoming quarter remained robust at $684.33 million, indicating a 17.07% increase year-over-year. This positive financial outlook likely contributed to the surge in investor confidence and stock price.3. Market Response: The surge in TTD's stock price demonstrates the market's positive response to the company's inclusion in the S&P 500 and its strong financial outlook. This is a pivotal moment for TTD, as it marks increased visibility and credibility in the market.In conclusion, TTD's performance following the 9% intraday surge showcases the market's enthusiasm due to the company's inclusion in the S&P 500 and its optimistic financial forecast. This is a testament to the market's confidence in TTD's future prospects and its potential for continued growth.

The Trade Desk’s S&P Momentum: Ride the Wave or Wait for a Pullback?
The Trade Desk’s S&P 500 inclusion has ignited a historic rally, but traders must weigh momentum against valuation. With a dynamic PE of 197x and resistance at $86, a pullback to the $72.25 support zone could offer better entry points. Sector leader Alphabet (GOOGL) is up just 0.84%, underscoring TTD’s outlier status. Monitor the $85–$86 resistance and Evercore’s $90 target—this move isn’t over yet.

Final Insight: Bullish traders: Buy TTD20250725C85 now or wait for a $72.25 retest. Skeptics: Watch for S&P inflows to sustain momentum past July 18.