Analysis of Unusual Options Activity and the DJT Surge
This is the TradingFlow Team, and this article will discuss how to capture the surge trend of DJT stocks through options data.
Recently, as Trump’s popularity surged on the prediction platform Polymarket, a wave of Trump Trades has swept the market.
Leading the charge, Trump-linked stock Trump Media & Technology Group Corp (DJT), skyrocketed with the rally beginning on 24th September and peaking intraday at $54.68 on 28th October, a remarkable gain of nearly 350%.
During DJT’s recent price surge, TradingFlow team identified the strong short-term bullish trend early on, based on unusual options data movement, with the trend confirmed as early as 11th October. At that confirmation point, there was still more than 100% upside potential until DJT’s stock reached its record high.
Now, let's take a look back at how our team detected this explosive rally signal by analyzing changes in Open Interest (OI). Using TradingFlow's Option Chain Explorer data, we observed a sharp increase in OI for DJT's bullish options contracts, with nearly 50,000 open contracts, suggesting a substantial inflow of capital betting on a major DJT rally.
Then, looking further at the related call options showing significant OI changes on the Option Chain Explorer:
· Strike price of $25, Expires on Nov. 15, 2024
Data shows that on 10th October, a large volume of new call buy orders opened, betting on a rise in DJT (note: the OI DIFF value updated on 11th October reflects the previous trading day's change). These positions were gradually closed over subsequent trading days. By 30th October, when DJT experienced a pullback, the OI for this contract was only about 15% of its 11th October peak."
· Strike price of $25, Expires on Nov. 15, 2024
The inference logic for the $35 strike call option contract is similar to the one mentioned earlier, though the exit level for this contract has been less extensive than the $25 strike call option with the same expiration date. This might be because there is still some time until the U.S. election, and traders have retained some positions as a strategic hold.
Interested readers can check out the specific contract activities on the trading day by exploring the data section of TradingFlow’s Contract Level Explorer. Subscribe our blog to catch more trend signals together!
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Before making any financial investment decisions, please ensure you thoroughly understand all aspects of the information and conduct your own research.
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