Investors in Reddit Inc (Symbol: RDDT) gained access to new options expiring in September 2028 today. The key contracts include a put option with a $140.00 strike price, currently bidding at $47.50, which could lower the effective cost basis of the shares to $92.50—below the current trading price of $144.99. This put has a 75% chance of expiring worthless, offering a potential yield of 33.93% on cash commitment, or 14.69% annualized.
Additionally, a call option with a $185.00 strike price is bidding at $50.50. Purchasing shares at $144.99 and selling this call could yield a total return of 62.42% if exercised. However, there’s a 35% chance the call will expire worthless, allowing the investor to keep the premium as a 34.83% return, or 15.08% annualized. The implied volatility for the put contract stands at 73%, while the call is at 70%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
