RDDT Deep Dive: How I Made +$140k on Reddit in 2025

By far, my biggest winner of 2025 has been RDDT (Reddit). I’ve generated over $140,000 in gains from this single stock through a combination of wheeling and directional trades. Here’s the full breakdown.

Why I Got Into RDDT Early

Reddit IPO’d in March 2024. I started paying attention immediately because I recognized it as a unique asset — Reddit is not just a social media company. It’s an internet-scale database of authentic human opinions and discussion. The AI licensing angle was obvious to me early: every AI company needs training data, and Reddit has 18+ years of it.

The Business Case for RDDT

500M+ monthly active users across 100k+ communities. Advertising revenue growing 40%+ year-over-year. Data licensing deals (Google paid $60M/year for training data access). Massive untapped international expansion. User engagement metrics that rival any social platform. Low institutional ownership initially = room for institutional buying.

How I Built the Position

I started wheeling RDDT at around $50-60/share after the IPO settled. I sold CSPs at the $45-50 strikes and got assigned. Then I ran covered calls above my cost basis. Each cycle, my effective cost basis dropped as I collected premium.

The Big Moves

RDDT had several big earnings beats in 2025. When it jumped to $120, then $150, then $200+, my cost basis was so low (around $40 adjusted) that every covered call I sold was pure profit. The stock went from ‘fine premium generator’ to ‘life-changing trade’ because I stayed in it long enough.

Key Lessons from the RDDT Trade

1. Do your homework on the underlying business — I understood WHY Reddit was valuable before I traded it 2. The Wheel’s cost basis reduction is a superpower over time — each premium collected lowers your break-even 3. Don’t over-hedge when you have conviction — I kept meaningful share exposure and didn’t cap all my upside with CCs 4. Patience — the biggest gains came from holding through periods when the stock wasn’t moving much 5. It’s okay to have a ‘hero’ position when you’ve done the work

Is RDDT Still Worth It?

As of September 2025, yes — but the setup is different. The stock is no longer undiscovered. But the business fundamentals remain excellent. I’m still selling CSPs and CCs, but at much higher strikes. The premium income is still solid.