Does Reddit have a chance to recreate the GME squeeze?
meme stock base $Reddit(RDDT)$ community on the option after everyone is looking forward to what? That must be a reprise of GME's gamma squeeze. However, at present, there is only month power without week power, it is slightly difficult to squeeze, but I believe that the reddit community can do anything, and wait and see.
In terms of trading volume, reddit options are far more active than $Astera Labs, Inc.(ALAB)$ , Nvidia Jr. The April expiration 95 call traded 4,200 as of the closing session, while the 25 put traded a staggering 11,800 with 5,562 open interest.
The highest open strike price of ALAB April call options is 100, open interest is 1174, volume is 2795; The highest open strike price of the put option is 55 and the open interest is 527. It shows that the future trend of ALAB is expected to be more stable.
The exaggerated volume of Reddit options comes from the current inflated stock price. If based on the PINS P/E valuation then 40 is a more reasonable price. But the capacity and growth potential of the text community is lower than that of the image community, so I think the actual value can be even lower. But who would bet against the stock of their own bookmaker?
Reddit options traders aren't just retail investors either, today there's a set of million spread strategies: sell $RDDT 20240719 85.0 CALL$ , buy $RDDT 20240719 90.0 CALL$ and make 100,000 inside and out. Although Reddit has the risk of being squeezed, the implied volatility of call options is too high, the implied volatility in April is as high as 175%, and the implied volatility in July is as high as 129%, and the selling strategy is a more rational trading idea, focusing on buying another leg to prevent the squeeze risk.
What I am looking forward to most is the launch of Zhou Quan, and the probability of squeeze will be higher after Zhou Quan's launch. However, if I am a market maker, I may put the online time after April 19, kill all the high-volume and then last week, and do not give retail investors any chance to squeeze before this.
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- AndrewWalker·03-27🚀LikeReport