DJT is a volatile stock: How options can help manage the risk

Shares of Trump Media and Technology Group (DJT) have been on a wild ride this week. The stock was halted following a sudden drop on Tuesday. On Wednesday, however, it closed 15% higher. One group that was watching the action closely was options traders. Explosive Options technical analyst Bob Lang tells Yahoo Finance that options traders "love" the kind of volatility that Trump Media's stock exhibits "because there could be a huge payout if you if you hit a home run, if the stock moves in the direction that you're looking for it to go into." Lang also explains how options can help traders manage their risk with a stock as volatile as DJT. "Even though the stock can move in a big way, not just every week, but even every day, you can define your risk by just saying, 'I'm going to buy a call or buy a put. And that is all I can lose a period,' regardless of what direction the stock goes into. So if you're wrong and you buy a put and you're picking up the stock to go down and it ends up going up, you pretty much just defined your risk." Watch the video above to hear what trades Lang is watching around the election. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Stephanie Mikulich.