A group of Wall Street investors, mostly amateurs, have collectively made tens of millions of dollars by betting against the stock price of Donald Trump's social media business, Truth Social.
They have made these bearish gambles using trading tools like put options, driven more by the company's poor financials than personal feelings towards Trump.
Truth Social made less money last year than the average Wendy's hamburger franchise.
These investors are not big fans of Trump but see the financial instability of the company as a profitable opportunity.
IT security specialist Jeff Cheung expresses doubt in Donald Trump's business acumen, citing failed businesses and the struggling performance of Trump Media's stock.
Since its initial public offering in February, the stock has dropped from $66.22 to $41.54.
Institutional investors have made around $200 million in profits through put options and short selling, but individual traders, who have invested relatively small amounts, are cautiously cashing in some profits while keeping other bets open.
The stock's volatility keeps them watching for further developments.
A group of investors, including day traders and hedge fund traders, have been betting against former President Donald Trump's financial stake in his company, DJT, which is also his stock ticker.
The stock saw a sudden surge of nearly 40 percent in two days, leaving some investors unsure of its direction.
Despite the stock's current value of $4 billion, which is still worth half of Trump's stake, some investors hope to push it to zero.
This not only represents a potential financial gain but also a political benefit, as it could limit Trump's ability to use his stake to pay legal bills or fund future political campaigns.
These investors typically conduct extensive research before short selling, including analyzing financial statements, industry expertise, and even consulting forensic accountants to uncover hidden weaknesses.
The text is about Trump Media and Technology Group, a Sarasota, Florida-based company that reported significant losses of $58 million last year on minimal revenue of $4 million.
The losses raised concerns about the company's ability to continue operating.
A short seller, Manny Marotta, had made a profit of around $4,000 by betting against the company through "put" options.
The text describes Marotta's monitoring of the company's stock price movements at home.
The text describes the volatile stock market situation of DJT, specifically focusing on the buying activity of wealthy investors that pushes up the stock price.
Marotta expresses concern as his options become less valuable and accuses manipulation.
Short sellers, who borrow shares to sell with the hope of buying them back at a lower price, are particularly affected by DJT's high fees.
At one point, the annual fee reached 565%, making it extremely difficult for short sellers to profit before the fees consume any potential gains, even if the stock went to zero.
This exorbitant fee is rare, with only three other stocks in the past having exceeded it.
A small media company, Trump Media and Technology Group, went public through a reverse merger with a blank-check company, Digital World Acquisition Corp. The stock price surged after the announcement, reaching as high as $94.50 per share.
However, the company has no revenue and is yet to launch its social media platform.
Trump supporters have been buying the stock as a way to support the former president.
Drechsler, a financial analyst, warns of potential losses for investors due to the company's lack of revenue and financial instability.
The company has $200 million in cash and no debt, but there is a risk of a "short squeeze," where short sellers are forced to buy shares to cover their losses, leading to a vicious cycle of price hikes.
Critics argue that the AP's coverage of the company is biased against Trump.
Ihor Dusaniwsky, a short-selling expert from S3 Partners, warns that if former President Donald J.
Trump's (DJT) stock rallies, there could be a significant price swing due to the small float, or tradable shares, which is only 29% of the total shares.
This is a risky situation, especially since Trump and other executives are unable to sell their shares until September due to "lock up" agreements.
A large purchase or sale could cause a significant price increase or decrease, as the float is smaller than that of other volatile stocks like AMC, GameStop, and Shake Shack.
Seattle trader Cheung believes that when the lock-up period ends for Donald J.
Trump's stock ownership, he will sell his shares, causing a market downturn.
Even if Trump doesn't sell, other insiders might fear he will and sell first.
Cheung is making a "put" bet against the stock, but also buying "calls" as a hedge.
If the stock price falls, the puts will pay off, but if it rises, the calls will.
A simpler way to bet against Trump is to simply short sell the stock.
Offshore betting sites, which operate in a casino-style format, are currently accepting wagers on the 2024 presidential election.
Joe Biden is currently the favorite to win the election in these predictions.
Truth Social made less money last year than the average Wendy's hamburger franchise.
These investors are not big fans of Trump but see the financial instability of the company as a profitable opportunity.
IT security specialist Jeff Cheung expresses doubt in Donald Trump's business acumen, citing failed businesses and the struggling performance of Trump Media's stock.
Since its initial public offering in February, the stock has dropped from $66.22 to $41.54.
Institutional investors have made around $200 million in profits through put options and short selling, but individual traders, who have invested relatively small amounts, are cautiously cashing in some profits while keeping other bets open.
The stock's volatility keeps them watching for further developments.
A group of investors, including day traders and hedge fund traders, have been betting against former President Donald Trump's financial stake in his company, DJT, which is also his stock ticker.
The stock saw a sudden surge of nearly 40 percent in two days, leaving some investors unsure of its direction.
Despite the stock's current value of $4 billion, which is still worth half of Trump's stake, some investors hope to push it to zero.
This not only represents a potential financial gain but also a political benefit, as it could limit Trump's ability to use his stake to pay legal bills or fund future political campaigns.
These investors typically conduct extensive research before short selling, including analyzing financial statements, industry expertise, and even consulting forensic accountants to uncover hidden weaknesses.
The text is about Trump Media and Technology Group, a Sarasota, Florida-based company that reported significant losses of $58 million last year on minimal revenue of $4 million.
The losses raised concerns about the company's ability to continue operating.
A short seller, Manny Marotta, had made a profit of around $4,000 by betting against the company through "put" options.
The text describes Marotta's monitoring of the company's stock price movements at home.
The text describes the volatile stock market situation of DJT, specifically focusing on the buying activity of wealthy investors that pushes up the stock price.
Marotta expresses concern as his options become less valuable and accuses manipulation.
Short sellers, who borrow shares to sell with the hope of buying them back at a lower price, are particularly affected by DJT's high fees.
At one point, the annual fee reached 565%, making it extremely difficult for short sellers to profit before the fees consume any potential gains, even if the stock went to zero.
This exorbitant fee is rare, with only three other stocks in the past having exceeded it.
A small media company, Trump Media and Technology Group, went public through a reverse merger with a blank-check company, Digital World Acquisition Corp. The stock price surged after the announcement, reaching as high as $94.50 per share.
However, the company has no revenue and is yet to launch its social media platform.
Trump supporters have been buying the stock as a way to support the former president.
Drechsler, a financial analyst, warns of potential losses for investors due to the company's lack of revenue and financial instability.
The company has $200 million in cash and no debt, but there is a risk of a "short squeeze," where short sellers are forced to buy shares to cover their losses, leading to a vicious cycle of price hikes.
Critics argue that the AP's coverage of the company is biased against Trump.
Ihor Dusaniwsky, a short-selling expert from S3 Partners, warns that if former President Donald J.
Trump's (DJT) stock rallies, there could be a significant price swing due to the small float, or tradable shares, which is only 29% of the total shares.
This is a risky situation, especially since Trump and other executives are unable to sell their shares until September due to "lock up" agreements.
A large purchase or sale could cause a significant price increase or decrease, as the float is smaller than that of other volatile stocks like AMC, GameStop, and Shake Shack.
Seattle trader Cheung believes that when the lock-up period ends for Donald J.
Trump's stock ownership, he will sell his shares, causing a market downturn.
Even if Trump doesn't sell, other insiders might fear he will and sell first.
Cheung is making a "put" bet against the stock, but also buying "calls" as a hedge.
If the stock price falls, the puts will pay off, but if it rises, the calls will.
A simpler way to bet against Trump is to simply short sell the stock.
Offshore betting sites, which operate in a casino-style format, are currently accepting wagers on the 2024 presidential election.
Joe Biden is currently the favorite to win the election in these predictions.
