Reddit Shares Explode Again As Options Gain Traction With Bulls
deadline.comShares in Reddit, which surged last Thursday in their blockbuster IPO, exploded again Monday as bullish investors bought into options on the social media firm.
The tech stock went public at $34 and jumped 48% in its first day of trading. On Monday, it shot up again, adding $13.75 (or a gain of 30%) to end the trading day at $59.75.
The debut of options trading tied to Reddit appeared to fuel to stock’s steady rise, with tens of thousands of put/call options on the company starting to trade amid indications of bullish sentiment.
Options can provide a sense of investors’ outlook on a stock into the future, with a call option giving the buyer the right to buy shares at a fixed price and a put option providing the right to sell at a certain price.
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