u/Skezzors ·
Reddit — r/wallstreetbets
· August 13, 2026 at 21:30
· ⬆ 137 pts
· 💬 47 comments
| View on Reddit ↗
AI Summary
Summary
Post highlights Reddit (RDDT) being added to the S&P 500, replacing AvalonBay, effective Aug 18.
Author’s thesis is that index inclusion will drive forced buying and help recover a prior $50K earnings loss; he is already up 11% after hours.
This is primarily a news-driven speculation post with position disclosure, not deep fundamental research.
Score137
Comments47
Upvote %96%
▶ Full Post Text
I might finally recoup the 50k loss I had from earnings, so far up +11% AH.
>NEW YORK, August 13, 2026: S&P Dow Jones Indices will make the following changes to the S&P 500 and S&P MidCap 400: • Reddit Inc. (NYSE: RDDT) will replace AvalonBay Communities Inc. (NYSE: AVB) in the S&P 500 effective prior to the opening of trading on Tuesday, August 18. S&P 500 constituent Equity Residential (NYSE: EQR) is acquiring AvalonBay Communities in a deal expected to be completed soon, pending final conditions. Post merger, the combined company will be renamed Vivmark Residential (NYSE: VMRK) and will remain in the S&P 500.
Positions:
1800ish Shares of RDTL
100 Shares of RDDT
5 LEAPs and 3 October 175 calls
S&P Dow Jones announced RDDT will replace AVB in the S&P 500 before market open on Aug 18. Passive index funds and ETFs tracking the S&P 500 are forced to buy RDDT, creating a measurable short-term demand shock. Author is positioned with shares and call options, expecting the index inclusion tailwind to drive further upside beyond the immediate AH move. The AH pop may already price the event; index inclusion can be “buy the rumor, sell the news”; broader market conditions or options decay could hurt leveraged positions.