Reddit (RDDT) Surges 7.46% Intraday Amid Volatile Trading Session – What’s Fueling the Momentum?

Summary
• Reddit (RDDT) trades at $236.475, up 7.46% from its $220.06 previous close
• Intraday range spans $224.65 to $239.37, with 2.12% turnover
• Options chain shows heavy call buying at 230–245 strikes, with 296,086 contracts traded
Reddit’s explosive intraday rally has ignited speculation about catalysts behind the 7.46% surge. With the stock trading near its 52-week high of $253.14 and a dynamic P/E of 191.67, the move defies the sector’s muted performance. Traders are parsing technical signals and options activity for clues as the stock tests key resistance levels.

Options Volatility and Short-Term Technicals Drive Reddit’s Rally
The surge in RDDT is driven by a confluence of technical and options-driven factors. The stock’s 7.46% intraday gain has pushed it to within 6.5% of its 52-week high, with heavy call option buying at strikes between $230 and $245 amplifying momentum. The MACD histogram (-3.5) indicates bearish divergence, yet the RSI (47.6) remains in neutral territory, suggesting a potential reversal could be brewing. Bollinger Bands show the price is near the upper band (246.12), hinting at overbought conditions. The 200-day MA ($151.49) is far below current levels, underscoring the stock’s long-term ranging pattern.

Reddit Outpaces Internet Sector as Meta Trails Behind
While Reddit’s 7.46% gain is stark, the broader Internet Content & Information sector remains subdued. Sector leader Meta (META) is up just 0.53% intraday, highlighting a divergence in performance. This suggests Reddit’s move is driven by stock-specific factors—likely options activity and short-term technical dynamics—rather than sector-wide optimism. The sector’s muted response underscores the importance of analyzing RDDT’s unique technical profile and options flow.

High-Leverage Call Options and ETF Alternatives for RDDT Bulls
• 200-day MA: $151.49 (far below) • RSI: 47.6 (neutral) • MACD: 12.45 (bearish signal) • Bollinger Bands: 246.12 (upper), 222.69 (middle) • 30D Support: $218.04–$220.07

Reddit’s technicals present a mixed picture: short-term bearish momentum clashes with overbought price action. Key levels to watch include the intraday high of $239.37 and the 52-week high of $253.14. While the sector remains unexcited, the options chain reveals aggressive call buying at strikes between $230 and $245. Two top options for consideration are:

• RDDT20250912C230: Call, $230 strike, 2025-09-12 expiry • IV: 67.85% (moderate) • Leverage: 19.26% • Delta: 0.5728 (moderate sensitivity) • Theta: -0.9686 (high time decay) • Gamma: 0.01499 (high sensitivity to price moves) • Turnover: 347,576 (liquid)
• RDDT20250912C235: Call, $235 strike, 2025-09-12 expiry • IV: 66.86% (moderate) • Leverage: 24.53% • Delta: 0.4961 (moderate sensitivity) • Theta: -0.9686 (high time decay) • Gamma: 0.01547 (high sensitivity to price moves) • Turnover: 347,576 (liquid)

Both contracts offer high leverage and gamma, ideal for capitalizing on a potential breakout above $239.37. A 5% upside scenario (targeting $248.30) would yield a $18.30 payoff for the 230-strike call and $13.30 for the 235-strike call. Aggressive bulls should consider these options into a break above $239.37, with a stop-loss below the 30D support at $218.04.

Backtest Reddit Stock Performance

Reddit’s Rally: A Short-Term Play or a Setup for Correction?
Reddit’s 7.46% intraday surge is a blend of technical overbought conditions and aggressive options-driven momentum. While the stock remains 6.5% below its 52-week high, the MACD bearish divergence and RSI neutrality suggest caution. Traders should monitor the $239.37 intraday high and $224.65 low for potential trend continuation or reversal. The sector’s muted response—Meta’s 0.53% gain—further isolates RDDT’s move to short-term speculative flows. For now, the 230–235 call options offer high-leverage exposure to a potential breakout, but a breakdown below $224.65 would signal a shift in sentiment. Watch for $239.37 breakout or a reversal into the 30D support zone.