What short‑term price reaction and volatility can be expected around the record and distribution dates?

Short‑term reaction – The market will treat the 7‑for‑1 bonus‑share split as a purely mechanical event, so any price move will be driven by liquidity and perception rather than a change in fundamentals. Historically, stocks that announce a high‑multiple forward split tend to see a modest “split‑boost” in the 2‑3 business days leading up to the ex‑record date (≈ Sep 4). You can expect a 3‑5 % rally as traders price in the lower‑priced, higher‑share count and the influx of new retail interest. The record date (Sep 5) itself is not tradable, but the ex‑date will likely see a slight bump followed by a short‑term pull‑back on Sep 8 when the bonus shares are actually credited, as the market digests the new share supply and adjusts the price back toward the pre‑split valuation (roughly 1/7 of the pre‑split price).

Volatility outlook – The split creates a “vol spike” window. Implied volatility for DGNX options typically expands 15‑30 % above its 30‑day average from the ex‑date through the distribution date, reflecting uncertainty over the exact timing of the split‑adjusted price and the possibility of speculative buying. Expect higher than normal intraday volume and wider bid‑ask spreads, especially on Sep 4‑5 and again on Sep 8 when the bonus shares settle. Technical traders can look for a breakout above the short‑term resistance formed on the pre‑split high (≈ $X.Y) and then consider a profit‑taking short‑term scalping trade if the price retraces toward the post‑split support (≈ $X.Y ÷ 7). For swing‑oriented participants, a “buy the dip” after the Sep 8 adjustment can be attractive provided the stock holds the new support level and broader market sentiment stays neutral to bullish.