Safety Shot (SHOT) Surges 37% on DeFi Pivot Amid BONK.fun Acquisition – Is This the New Bull Case?

Summary
• Safety Shot’s stock rockets 37% intraday, surging from $0.5 to $0.6098 amid a strategic pivot to DeFi.
• Company acquires 10% revenue share in BONK.fun, a Solana-based meme coin launchpad, and secures 50% board seats for BONK’s core team.
• Turnover hits 13.8 million shares, with a 52-week high of $1.77 and a 52-week low of $0.23.
• The move signals a high-stakes bet on blockchain-driven revenue streams, but technical indicators hint at a bearish bias.

Safety Shot’s dramatic 37% intraday rally has ignited speculation about its new DeFi-focused strategy. The stock’s surge follows a landmark deal to integrate with BONK.fun, a high-growth Solana platform, while technical indicators and sector dynamics suggest a volatile path ahead.

DeFi Revenue Play Ignites Short-Term Frenzy
Safety Shot’s 37% intraday jump is directly tied to its acquisition of a 10% revenue share in BONK.fun, a decentralized Solana-based platform for meme coin creation. The deal, which includes $25 million in BONK tokens and board seats for BONK’s core team, positions SHOT to monetize the explosive growth of the Solana meme coin ecosystem. BONK.fun’s July 2025 user fees alone hit $35 million, with peak daily token launches exceeding 20,000. The company’s pivot to a revenue-generating DeFi treasury model—reinvesting 90% of BONK.fun profits into BONK tokens—has repositioned SHOT as a bridge between public markets and high-margin crypto assets. However, the stock’s sharp rise follows a 50% post-announcement drop, reflecting investor skepticism about memecoin volatility and SHOT’s weak financial health.

Blockchain Sector Volatility Amplifies SHOT’s Move
The Blockchain Technology sector is in flux, with Coinbase Global (COIN) up 4.25% intraday as institutional crypto adoption gains traction. SHOT’s 37% move outpaces sector peers but mirrors broader risk-on sentiment in DeFi-linked equities. However, SHOT’s leverage to BONK.fun’s speculative nature contrasts with COIN’s exchange-focused model. While the sector’s 4.25% gain suggests optimism, SHOT’s high debt and low cash reserves (despite a $15 million balance) raise concerns about its ability to sustain momentum. The stock’s 52-week low of $0.23 and -4.1x dynamic P/E ratio underscore its speculative profile, diverging from more established blockchain players.

Options and ETFs for Navigating SHOT’s High-Volatility Play
• Technical Indicators:
- 200-day MA: $0.5905 (above current price of $0.6098)
- RSI: 35.54 (oversold)
- MACD: 0.0913 (bullish divergence)
- Bollinger Bands: Price near lower band ($0.3057), suggesting potential rebound.

Trading Setup: SHOT’s RSI at 35.54 and MACD divergence hint at a short-term bounce, but the 30D and 200D support levels ($0.3866–$0.4904) remain critical. The stock’s 13.66% turnover rate and 13.8 million shares traded suggest liquidity, but its -4.1x P/E and weak balance sheet limit long-term upside. Leveraged ETFs like UPRO (1.27% up) and SPXL (1.24% up) could amplify gains if the broader market continues to rise, but SHOT’s standalone volatility makes it a high-risk, high-reward play.

Top Options:
- SHOT20260220C0.5 (Call):
- Strike: $0.50
- Expiry: 2026-02-20
- IV: 190.37% (extreme volatility)
- Delta: 0.7923 (high sensitivity)
- Theta: -0.000628 (moderate time decay)
- Gamma: 0.3575 (high sensitivity to price swings)
- Turnover: 2,860 contracts
- Leverage: 1.81%
- Why: This call option offers 60% price change potential with high gamma and delta, ideal for a bullish breakout. A 5% upside to $0.6398 would yield a payoff of $0.1398 per share.
- SHOT20260220P0.5 (Put):
- Strike: $0.50
- Expiry: 2026-02-20
- IV: 254.85% (extreme volatility)
- Delta: -0.1546 (low sensitivity)
- Theta: -0.000577 (moderate time decay)
- Gamma: 0.2219 (moderate sensitivity)
- Turnover: 150 contracts
- Leverage: 1.93%
- Why: This put offers downside protection with high IV and moderate gamma. A 5% downside to $0.5793 would yield a payoff of $0.0203 per share.

Action: Aggressive bulls should target SHOT20260220C0.5 for a breakout above $0.6227 (intraday high). Cautious investors may hedge with SHOT20260220P0.5 to protect against a pullback to $0.50 (support level).

Backtest Safety Shot Stock Performance
The 37% intraday surge in Safety Shot (SHOT) stock would significantly impact its subsequent performance, given the volatility of such a large movement. Here's how the stock might respond:1. Short-Term Volatility: After a large surge, there could be a correction phase where the stock experiences some volatility as traders react to the news and adjust their positions.2. Technical Analysis Impact: A 37% surge would likely lead to a strong technical indicator, potentially causing a breakout above key moving averages, which could attract more buyers in the short term.3. Market Sentiment: The surge might significantly improve market sentiment around Safety Shot, potentially leading to increased investor confidence and further price appreciation.4. Long-Term Outlook: However, long-term performance would depend on the company's fundamentals, such as financial health, growth prospects, and market conditions.5. Resistance Levels: The stock would need to overcome any resistance levels that have been established; if the surge brings the stock near or above resistance, it could face selling pressure as investors take profits.In conclusion, while a 37% intraday surge is a significant event, it's important to consider both short-term and long-term factors when assessing Safety Shot's performance afterward. The stock may experience further volatility in the short term, but its long-term trajectory will depend on broader market conditions and the company's fundamentals.

SHOT’s DeFi Gamble: Ride the Wave or Watch the Crash?
Safety Shot’s 37% intraday surge is a high-stakes bet on the Solana meme coin ecosystem, but technical indicators and weak fundamentals suggest caution. The stock’s RSI at 35.54 and MACD divergence hint at a potential rebound, but its -4.1x P/E and $0.57 million trailing revenue raise red flags. Investors must watch the $0.6227 intraday high and $0.50 support level for directional clues. Meanwhile, the sector leader Coinbase (COIN) is up 4.25%, signaling broader crypto optimism. For SHOT, the path forward hinges on BONK.fun’s ability to sustain its $35 million monthly fees and SHOT’s treasury reinvestment strategy. Act now: Buy SHOT20260220C0.5 for a bullish breakout or short SHOT20260220P0.5 to hedge a pullback. The next 48 hours will test whether this DeFi pivot is a revolution or a fad.