Commentary: The Trump trade is getting wild

Published On Oct 22, 2024, 3:50 PM

The article discusses how investors are speculating on Donald Trump's electoral prospects through his company, Trump Technology and Media Group (DJT), which is largely tied to the success of Trump's presidential campaign. Trading in DJT shares and options is highly volatile, and many investors are focusing on options that expire in mid-November, suggesting they anticipate a delayed election result. The stock has shown extreme price fluctuations, tied closely to the political climate and Trump's popularity. With extremely high implied volatility, the market is reacting based on potential outcomes of the election rather than the company's current financial health.