The “Trump SPAC”, created to bring the brand-new Truth Social app to the public markets, is #1 on both StockTwits and the Apple App Store this morning.

Image Source: Apple

The Truth Social app just went live last night, which is why today is such a critical day for DWAC stock.

With so much retail enthusiasm around such a speculative name, I’m intrigued at the prospect of buying puts on DWAC.

And speaking to all the day traders out there, there’s a VERY SPECIAL event coming up that you won’t want to miss…

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But now it’s time to go over a few key points on what I’m looking for with DWAC.

Key Level: $90 Support

• The key support level I’m focused on today is $90. 
• DWAC has consistently bounced at or near this level.
• If it loses $90 … look out below. But if it holds $90, that could be a sign of further strength.

Key Level: $100 Resistance

• The key resistance level I’m watching is $100.
• Big round numbers (like $100) tend to create psychological resistance.
• WARNING: Any move past $100 on high volume could trigger a massive short squeeze!

CAUTION: Extremely High Implied Volatility (IV)

• The risk/reward on the DWAC options chain is hard to stomach due to elevated IV.
• Market makers are pricing in a huge move, making the options more expensive.
• If I do buy DWAC puts, I’ll have to be perfect with my timing to catch the perfect near-term downside.

Waiting for a Huge Squeeze

• Ideally, I’d love to buy DWAC puts into a rollicking short squeeze.
• I think a high-volume move to the $150–$200 area is possible.
• If such a squeeze occurs, the risk/reward on puts will become considerably more attractive to me.

Final Thoughts

If you’re considering an options trade on DWAC … be cautious! 

Don’t ignore the high premium on the contracts. Your timing must be perfect.

And keep a close eye on the $90 and $100 levels for a potential break above (or below) that range.