Amateur Wall Street investors are cashing in on the downfall of Donald Trump’s social media venture, Truth Social. The company’s stock price has plummeted from $66.22 to $38.49 in just one month, leading some investors to rake in profits of over $200 million.
These investors are using sophisticated trading tools like “put” options to bet against Trump Media & Technology, which has reported significant losses and doubts about its financial sustainability. Some are even predicting that the stock could fall to zero, potentially crippling Trump’s ability to fund his legal battles or future presidential campaign.
Short sellers are facing steep borrowing fees for DJT stock, and the small float could trigger large price swings. A “short squeeze” and the expiration of lockup agreements could further impact the stock price in the coming months.
To hedge their bets, some investors are utilizing both “put” and “call” options on Trump Media’s stock. Additionally, offshore betting sites are offering odds on the 2024 election, with President Joe Biden currently favored to win.
With these developments, amateur investors are proving to be a formidable force in the financial markets, profiting off the struggles of Trump’s social media venture while also predicting potential future hurdles for the former president. Stay tuned for more updates on this evolving story.
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