(Reuters) – Shares of social media platform Reddit jumped 11% on Tuesday, set to extend a strong run from a day earlier following the launch of options on the stock.
At current price of $67.5, more than $1 billion was set to be added to the company’s market value. The stock was also on track to nearly double its IPO price of $34.
“More bullish investors have bought options in Reddit, which is part of its early stock market success in its first full week of trading,” said Jeremy Goldman, senior director of client briefings at Emarketer, formerly Insider Intelligence.
The launch of options trading drew bullish bets on the stock on Monday, closing up around 30% and making it the top percentage gainer on the New York Stock Exchange.
“From my estimates, about 90,000 options have changed hands, possibly more,” Goldman added.
Current gains could also help surpass the $10 billion valuation Reddit received in a private fundraising round in 2021.
(Reporting by Zaheer Kachwala in Bengaluru; Additional reporting by Jaspreet Singh; Editing by Sriraj Kalluvila)