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RDDT’s High-Volume Call Spread Delivers 23.9% Gain on 2,450 Contracts as Stock Jumps 7.71%
When 2,450 contracts of a call spread hit the Reddit (RDDT) options tape, traders paid attention. Executed at a VWAP price of $17.72 on September 10, 2025, this trade generated a swift gain of $4.23 per spread—or 23.9%—after the underlying stock surged from $252.78 to $258.72. That price move alone added nearly $2.1 million in notional value for the trade’s buyers in less than a day.
Key Trade Details: 235-270 Sep '25 Call Spread at Scale
| Expiration | Strike Prices | Contracts | VWAP Price | Stock Ref. Price | Potential Payout |
|---|---|---|---|---|---|
| 12-Sep-25 | 235–270 | 2,450 | $17.72 | $252.78 | Up to ~$2.1M |
- Trade was executed near midday with a bid-ask VWAP of $17.26–$18.20
- To maximize profit, RDDT must close above $270 on September 12, 2025
- The buyers committed over $2.2 million on this trade
Curious about other notable multi-leg trades? You can analyze more using the multi-leg trade screener, or dive into this specific trade at the multi-leg analyzer.
Strategy and Potential Aim: High Conviction on a Short-Term Upside
The mechanics of this trade suggest a well-defined risk-reward: the maximum possible profit—nearly doubling the $2.2 million outlay—occurs if RDDT rallies past $270 by expiration. In other words, the spread buyer is wagering on at least a 4.37% further rise from the current price by Friday’s close, while limiting downside to the initial premium paid.
Technical Indicators Are Bullish: Stock Momentum Outpaces the Market
RDDT’s price action isn’t just fast—it’s dominating. A 7.71% surge on the session takes the price 13.5% above the 20-day average, 37.2% above the 50-day, and a massive 84.4% over the 250-day average. RDDT’s performance streak has eclipsed the S&P 500 ETF (SPY) by a wide margin over every time horizon this year. Recent price history highlights:
| Duration | RDDT Return | Low | High | SPY Return |
|---|---|---|---|---|
| Today | +7.7% | 244.85 | 261.13 | +0.3% |
| 2 Week | +17.9% | 208.24 | 261.13 | +1.1% |
| 1 Month | +20.1% | 205.37 | 261.13 | +2.3% |
| 3 Month | +120.1% | 110.85 | 261.13 | +9.0% |
| 6 Month | +93.1% | 79.75 | 261.13 | +13.8% |
| 1 Year | +350.3% | 55.48 | 261.13 | +20.7% |
| YTD | +58.3% | 79.75 | 261.13 | +11.9% |
| 3 Year | -- | -- | -- | +65.4% |
| 5 Year | -- | -- | -- | +101.4% |
Other bullish indicators:
- Uptrend on all key moving averages (20D, 50D, 250D)
- Currently 366.3% above 52-week low; trading just 2.2% off 52-week high
- Stock is breaking above its daily resistance ($250.36), reinforcing near-term momentum
Over the past year, RDDT has soared 350.3%—far outpacing SPY’s 20.7% gain over the same stretch.
Option Skew Indicator Slightly Bullish: Forward-Looking Market Posture Remains Constructive
The proprietary 30-day option skew ranks at 59%, suggesting that traders have adopted a slightly bullish stance in the short term. In this framework, 100% would indicate the most optimistic options posture over the past year, and 0% would signal peak pessimism. Today’s reading falls on the bullish side of the scale and adds weight to the positive technical story already visible in the underlying stock’s trend.
Key Takeaway: Multiple Indicators Signal Bullishness as Trade Buyers Lock In Quick Gains
The magnitude of the 2,450-contract call spread—and its rapid 23.9% gain—aligns with both technical momentum and market sentiment that currently favors upside. With the options market skew also registering bullish, and the stock handily outpacing the index, traders may want to keep a close watch on RDDT’s follow-through above the $270 strike into Friday’s expiration. To monitor similar strategies or uncover fresh multi-leg setups, check out the multi-leg option trade screener.
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NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
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