Company Overview - Reddit is set to report earnings with estimates of 96 cents for EPS on revenue of approximately $667.48 million [1] - The stock has experienced a significant decline, down over 30% in 2026 [1][3] Market Performance - Reddit has underperformed compared to the broader market, with the communication sector and S&P both up around 12-13% over the past year [3] - The company's revenue primarily comes from advertising, and recent earnings from Meta indicate a favorable environment for ad spending [3] Technical Analysis - Key price levels to watch include 150 and 178, which are identified as support and resistance points respectively [6][8] - The stock has crossed below its 251-day exponential moving average, currently near 183, indicating a bearish trend [9] - The RSI is at a low of 21.6%, suggesting the stock is oversold [9] Options Activity - There has been a slight increase in options activity, with a 1.73% sizzle relative to the 5-day options volume [11] - The expected move for February 20th is approximately ±19.5%, indicating a significant potential price movement [11] - A notable trade involved selling 500 puts at a 150 strike for a $12 credit, suggesting a possible opening position [12]
Reddit Oversold Into Earnings & Options Activity for RDDT