DWAC is one of the top performers on the Nasdaq today
Digital World Acquisition Corp (NASDAQ:DWAC) is one of the top performers on the Nasdaq today, up 20% at $20.98 at last glance, and earlier trading as high as $22.90. Former U.S. President Donald Trump's potential 2024 election run is at the center of the rally, as the special purpose acquisition company (SPAC) is still aiming to take Trump's social media platform public.
The stock is looking to close above the $21 level for the first time since September 19, however, the rally is falling short of long-term pressure at its 80-day moving average. Year-to-date, DWAC is down 59.8%.
Puts have been more popular than usual in the options pits, per DWAC's 50-day put/call volume ratio of 3.50 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of readings from the past year.
Today, however, the 23,000 calls exchanged so far doubles the 11,000 puts, with call volume running at 14 times the intraday average. The March 10 and 12.50 puts are the most popular, with new positions being opened at the latter.
It's also worth noting that short interest makes up 12.7% of the stock's available float. It would take nearly four days to buy back these bearish bets, at DWAC's average pace of trading.