Reddit Sells Off on High Volume

September 19, 2025 ☼ missives

Reddit is my favorite mistake. I was selling cash secured puts on RDDT a while back and making some good coin until I got assigned at $185. Then I decided to start selling covered calls on it and rode it all the way down.

So far that’s been profitable to me but going forward I will only stick to selling puts or calls on the QQQs or other liquid ETFs.

RDDT had a big run up to its earnings and then skyrocketed after hours when earnings were announced. Suddenly my covered calls were in danger of being exercised but in true form, RDDT sold off the next day - another case of buy the rumor and sell the news.

Reddit Stock After Earnings

RDDT sold off right around its 50 and 200 DMA under heavy volume. What’s in store for RDDT now? Who knows but with Trump Tariffs hanging over our heads, it might stagnate or not. No matter, I’m either rolling or closing my covered calls next Friday for a profit as long as RDDT doesn’t hit $145.