ASST stock has increased in value after merging with Strive Asset Management, creating a new asset management firm focused on Bitcoin. A $750 million private investment is earmarked for Bitcoin purchases, and rising short interest has boosted investor confidence. The goal of the merger is to establish the first public asset-management firm with a Bitcoin treasury strategy. This led to speculation and a rise in stock price, as reported by GlobeNewswire, sparking renewed interest in the market. The $750 million private placement is set at $1.35 per share. If warrants are exercised, total investment could reach $1.5 billion, further concentrating on Bitcoin acquisition and enhancing market trust. In July, an updated merger agreement sparked more interest and buying activity among traders, as highlighted by Benzinga. ASST’s public float stands at about 14.9 million shares, with a short interest rate of 31%. This situation often results in short squeezes, where buyers force short sellers to cover, causing rapid price changes, according to MarketBeat. An upgrade in analyst ratings to “Hold” has also improved the stock’s momentum, as noted by MarketBeat. InvestingLive.com indicates that a price move above $4.80 may signal continued positive momentum. Due to the intense speculation surrounding the ASST merger, implied volatility in options has spiked. This makes options pricier but shows that the market expects significant price swings in the coming weeks. Traders should prepare for major movements instead of expecting steady price levels. For those optimistic about ASST’s future, purchasing call options with strike prices just above the $4.80 resistance level seems popular. There has been a notable increase in open interest for September and October $5 and $7.50 calls, suggesting traders believe the merger excitement and Bitcoin purchases will drive the stock price even higher. This strategy could yield substantial profits if the stock rises as expected. The potential for a short squeeze is significant and should not be overlooked. Recent data shows short interest has climbed to nearly 33% of the public float, setting the stage for a sharp price rally with any positive news. This mirrors the major short squeezes seen in 2021, where forced buying by short sellers led to sharp price increases. This positive outlook is bolstered by the overall performance of the cryptocurrency market. Bitcoin has regained strength, stabilizing above the key $95,000 mark after a brief dip in early July 2025. A strong Bitcoin price provides direct support for ASST’s treasury strategy, making it more appealing for new investors. On the other hand, traders who feel the rally might be overdone could think about buying put options. If the merger faces delays or if the stock doesn’t break and stay above $4.80, falling implied volatility may cause the stock price to drop sharply. Puts offer a way to profit from such declines or serve as a hedge for long positions. A more neutral approach could be to capitalize on volatility by buying a straddle, which involves purchasing both a call and a put option at the same strike price. This strategy benefits from significant price movements in either direction, which seem likely under current conditions. However, due to high option premiums, the stock must move considerably for this trade to be profitable.

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