My Game Plan for DWAC

by | Feb 22, 2022

If you’re a day trader then there’s probably one stock you have on your radar — Digital World Acquisition Corp. (NASDAQ: DWAC).

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…

My mentor Tim Sykes is hosting an all-day live trading session on Thursday, February 24! Learn Sykes’ method for finding the BEST STOCKS (even in a slow market!) Click here if you’re ready to trade!

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.

You deserve to trade efficiently

Trade confidently with powerful tools that can help you research, execute trades and follow market news. 

Meet Mark:

Mark Croock is a former accountant who after studying under Millionaire Trader Tim Sykes turned his small account into $4.11 million in trading profits by applying Tim’s strategies to options trading.

He started Evolved Trader to pay it forward and help other traders learn how to leverage options


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