Reddit Stock Soars on OpenAI Deal

Options traders are targeting RDDT today

Deputy Editor
May 17, 2024 at 10:34 AM
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Reddit Inc (NYSE:RDDT) stock is soaring today, up 16.9% at $65.90 at last glance. The social platform announced a partnership with OpenAI, giving the artificial intelligence (AI) company its data and putting its content on ChatGPT. In response, Deutsche Bank lifted RDDT's price target to $65 from $62, while Citigroup hiked to $70 from $65.

Publicly traded since March, Reddit impressed in its first-ever earnings report earlier this month. The stock has been moving higher on the charts since its mid-April lows, now at its highest level since Mar. 26. 

Reddit's options pits are busy in response. So far, 29,000 calls and 15,000 puts have been exchanged, which is five times the options volume typically seen at this point. Expiring at the end of the day, the May 65 call is the most popular, with new positions opening there. 

It's also worth noting that short interest has been building, up 47.8% in just the last two weeks. Now, 13.6% of RDDT's available float is sold short. 

 

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