Trump Media Options Volume Climb as Volatility Jumps Ahead of Elections

Luzi Ann Santos joined discussion · Nov 4 11:54

$Trump Media & Technology (DJT.US)$ options volume is rising as historical volatility hovers near the highest since June a day before the U.S. presidential election.

Shares of the company that counts former President Donald Trump as its largest shareholder rose 4.3% to $31.87 as of 12:47 p.m. in New York Monday, swinging from a loss of 5.5% earlier. The stock price fluctuated after a four-day slump of more than 40%.

Out-of-the-money put options that give the holders the right to sell Trump Media shares at $10 in 11 days attracted the heaviest trading among contracts linked to the parent company of Truth Social. Trump is running against Vice President Kamala Harris in Tuesday's presidential race.

Source: moomoo mobile app

(To see Trump Media's options chain, click here. For the U.S. options market page, click here.)

The price of those $10 put options rose 23% amid increasing demand for the contract that can protect the holders against downside potential. Those put options could expire worthless if the stock price stays above that strike price when the contract matures.

A combined 193,350 put options across 13 expiration dates stretching through Jan. 17, 2027 changed hands so far, surpassing the 20-day average of 151,483. Including the call options, volume reached more than 326,000 contracts, landing Trump Media in sixth place among the most active stock options, just behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$, $Super Micro Computer (SMCI.US)$, $Palantir (PLTR.US)$ and $Apple (AAPL.US)$. (To see the options ranking, click here.)

Volatility has risen for the unprofitable company that reported in August a net loss of $16.4 million for the second quarter and revenue of $837,000. The latest election surveys show a tight race between Harris and Trump.

Share your thoughts on Trump Media in the comments section and vote if you're bullish or bearish on the stock.

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