If you didn’t notice, you’re not looking at the news or social media at all. Trump’s conviction is the top headline pretty much everywhere. Since Trump Media & Technology Group Corp. (DJT) trades like a proxy for Trump’s name, you can easily assume there will be some added volatility to DJT shares and DJT options today.

If the reaction to yesterday’s conviction is any indication, it’s unlikely that DJT shares will suddenly collapse. For example, after the conviction, Trump’s donation webpage was so overwhelmed with people attempting to donate money that the website crashed.

DJT shares closed yesterday at 51.84. After the conviction, the stock fell to 44 in after-hours trading, then bounced back up. As of this writing, shares are up to 53.83. Bottom line, we may be able to take advantage of the increased volatility using a high-probability strategy.

The Volatility Cone graph shows that all terms have volatility expectations that are above the one-year historical average. To learn more about the Volatility Cone, click here. This data is from yesterday’s close, which is the most recent information available. That’s because the market closed before the verdict was announced. So everything is going to be vastly different when the market opens later this morning..

We’re already seeing rising volatility expectations in pre-open trading on DJT.  The good news is that we don’t need to predict which way the stock is going to move to take advantage of the increased volatility. We can use a high-probability strategy to profit if the stock does not fall below 15 by the October 18th expiration.

Trump has already said he will appeal the conviction, and it is unlikely that DJT will collapse below our breakeven before October options expire.

Be sure to read the ODDS Online Daily Trade Idea report to get the details of our trade idea for DJT.

To access Odds Online Daily and be able to see any stock you are tracking in this software, click here.

Thank you,

Don Fishback