The most surprising winner in the US Presidential Election

BY ANDREW GIOVINAZZI

November 8, 2024

Yo Pit Crazies,

DJT won the popular vote and few pundits had that in their bingo cards for 2024. What I am thinking is that there might be a little more wild west going on and old behemoths like Google, well Alphabet Inc (Ticker: GOOGL) might have some trouble from AI internet upstarts.

One of those upstarts is Reddit Inc. (Ticker: RDDT). We profiled it in The Ticker Highlight Show and I bought a small batch of shares for around $118. I tried some short put 1 x 2s but nothing filled. You know why? It did this:

I had no idea this was public and I had even less idea that Reddit reach was as far as it is. Basically the voice of the Millennials and everyone under 25.

Now that RDDT makes money on advertising and is already more profitable than Snap Inc (Ticker: SNAP), it is worth another look. I did have a nice Option Fingerprint special today and got to roll my Zoom Inc (Ticker: ZM) calls after they were up 100%. We can now ride the trade to June with no cost..

Let’s see if the Fingerprints are leaving marks in RDDT.

RDDT is not lighting up the Option Fingerprints yet

RDDT making big advertising dollars is the kicker. RDDT open interest on Aug 5th, recent lows in the 50s, had a relatively light institutional fingerprint. See below on the columns on the left.

RDDT has picked up some more volume and my favorite metric is investors are not closing the calls they already own. Look below and this was the snap from Nov 7th. This is only a slight pickup in volume in the Jan2026 options. Mostly a smaller float that retail investors are jumping into. It is growing in the last month which is a bullish sign.

I think it is still early and this could be a $200 stock by the end of 2026. IV is jumping as traders by calls. These are early days but a stock to watch. With the IVs expanding, selling some 70 or 80 puts, could bring decent yields.

With a new administration, comes new opportunities and outlooks. At Option Pit, we are always on the lookout for the next great money making idea.

To Your Trading Success,