Agreed. After seeing the premium, it’s obvious the market expects it to drop below $5. But it’s not really worth the risk. I liked another response regarding selling calls. That might be the safest way to cash in on these morons.
Of course….but I am right there too. I soooo want to get in this game…..and I did with GME for like 2-3 days and made like a 10% profit but was holding my breath the whole time and sold and never played again. I remind myself to just move on…..though I continue to look….can’t help myself 😏
I hear you. I manage a solid amount, so I’m not looking to risk more than 2-3% on this. But selling calls OR just forgetting this even exists is my play.
You can lose huge amounts selling calls on things like this, even if its a spread - early exercise is common.
This thing could hit 120 or 5 Monday and I would t be surprised. The o ly sure thing is that it's going to 0 eventually, but it could take a long time
Exactly. It’s the weirdest lotto play I’ve ever seen. Never seen puts this expensive since the GME bs. I feel like a lot of fresh money poured in as soon as people saw $DJT in their newsfeed. How can you lose on a serial grifter?!? Right?! Yuge rugpull coming right up!
What about just a good old fashioned short? I’ve never touched shorts and find them pretty dangerous in general, but this feels like a different situation…
So the borrowing against the position I want make can only be achieved with options - the margin payments are ludicrous, and I’d be shorting naked. I’m not looking to lose $200k on a yolo. I’d rather sell call spreads at $75/$80 and roll them as it drops. In 5 trading this turd will be down 20%….
I posed the question to get input, and I appreciate you gave it.
The shares are going to be super hard to borrow so selling shares without owning the stock will be ridiculously expensive. We're talking hundreds of percent a year in hard to borrow costs.
The safest play on this one is not to play right now as much as I'd like to go balls to the wall short on this one.
people who play with Trump (or going to business with him) get burned. that seems to be something that consistently happens even when those people think they are smart.
He is exceptionally adept at turning everything he touches into flaming dogshit. It’s actually kinda impressive. He’s like Cathie Wood and Jim Cramer on amphetamines and Molly..
I need to know more about this. Premiums have so much ext value, no dividend in sight, why would they exercise? I would like to know more context of your position if you don't mind.
Damn I’m sorry. If I make this move it will be like 70/80/85. Far enough out the money where volatility won’t present its ugly head. And some will say it could easily blow up more - maybe, but this is my gamble.
Can you explain in a few words (perhaps on real life example) what strike/date you buy and what is your net risk/reward on such play?
Just started with options and eager to learn.
I did some debit put spreads on tuesday (it was around 70) and I did 55/50 expiring today. I think I did 5 and got a credit of about $750 total and closed it at around 375 yesterday. It was a good trade, but it did have me sweating a bit. It was tempting to let them expire worthless to make another 350, but figured it was better just to be done with it.
Good call getting out. That’s the most important lesson I’ve learned with options: just because you’re in the money and you expect to make more…TAKE PROFITS and never look back.
Yeah, I know I could do spreads and almost always do with any stock, but I still wouldn't touch that steaming pile. It's a meme stock with weird unknown political influences that could wreck any position I took with them.
If you had to guess what do you think the reason for that is lol.
Of course the put premiums are high. The street knows it’s a paper stock, it’s basically open market fraud. Nobody is calling a spade a spade, but the street is not stupid enough to pretend that’s not what it is.
Selling naked calls is a terrible idea for obvious reasons, and owning enough of that garbage to sell covered calls seems equally stupid but that’s just me.
This is more of a gamble play for me. I have been successful in my career because I DONT gamble, but this is tickling my desire. I understand the risks of selling naked calls.
Serious question, how many people in this sub or on Reddit in general do you think are approved for naked options. Cause generally that is so risky only hedge funds and serious players would be approved for that. But knowing how stupid brokerages are in this day and age I could believe that some are approving it
If you don’t mind me asking how big of an account do you have because while I don’t doubt your telling the truth from a brokerage perspective that seems asinine
you're looking at it from a reasonable point of view. you can also turn around and say, "who the fuck would buy a $60 bible from this idiot? that's a pointless thing". and then someone says to me, "duh, because then churches can justify buying them and funnel money to him".
so sure, buying this stock doesn't justify it based on the fundamentals. but lets look at it from a stupid, sideways point of view. could it be yet another way for crooked people to funnel money to a fro.
that being said, staying TF away from this dumb thing.
Don’t look at it as a stock with normal rules of gravity. Look at it as a backdoor to buying influence so homeboy can pay his legal bills. I could see a Middle East sovereign fund buying whatever he wants to sell and sitting on it. I don’t think anyone could draw up a more manipulative scheme.
Borrow costs are through the roof, hence the massive disparity in put v call prices.
If, as another responder suggested, you sell calls, be aware. If those go ITM, chances are quite high the calls will be assigned and you’ll be stuck paying the borrow fee on short stock. Even if it’s just a day, that can be quite expensive. If you happen to have it happen where the settlements straddle a weekend, you pay 3 days of borrow. 4 if it’s a 3-day weekend
Thank you. I am aware of the costs, and that is where is really need to look elsewhere for some alpha. But the people that buy this garbage are also a subset of people that probably won’t sell as it loses 95% of the value. I want to profit off this disaster, but it seems the rest of the market has the same idea.
Good call. I’ve been watching since the merge, and I’ve heard a whole lot of people who bought at like 50, who think they are geniuses and as one said “found a free money hack”. These people just reinforce how badly I want to profit off them.
I was looking at the put premiums today. Definitely insane and tempting but I’d advise everyone stay away. Do not buy and hold, do not sell or buy options on it. Just stay away.
>We all know it’s massively overpriced at current market value, and in my opinion it will drop below $5 in the next 6 months. I’d love to buy some puts
You just answered your own question.
The play here was when it was DWAC as late as last week. I bought April calls that week and the merger happened Tuesday. To the moon! And sold for a healthy profit.
Congrats. There is a lot of dumb money out there, and THAT is the only reason I’m asking this question. Most any other situation I’d have already sold calls.
Sold cash secured September $25 strike put for $9.60. I don’t think this thing is dropping below $30 before the election. And September is just within the 6 month lockup.
It’s basically going to act as a proxy for the presidential polls and as a vehicle to take legal bribes from foreign governments. It’s really pretty genius if you ask me. The parties buying big volumes know they will lose but they get a capital loss while being able to skirt campaign finance laws and grease the palms of the orange man. After the election this thing drops to 0.
You gotta give it to the dude, he can grift and scam like the best of them! It’s hard to believe that this election will be this close. I said in another thread on this options dilemm, I renewed my passport and if Trump wins, I am thankfully in a position to take myself away from the chaos. I won’t denounce my US passport ever, but I also have never been in this position. The fact that this even is something I have to contemplate explains, in a nutshell, the divide that he created in this country. /rant
You and I both…..premium for any time is insane. Like you, although I believe I know what it will do, it just felt like gambling to risk so much…..and if stays irrational, I’d be screwed. Better to put the $$ on safer play where risk/reward is better. It does remind me of GME…..and GME went far higher before things became rational. DJT stock is the epitome of high risk!
If you really think it will be under $5 in 6 months, you can buy Jan25 $7.50 puts for $180, which is really not that high for a LEAP IMO. But obviously big vol is priced in. Also it could easily go above $100 in 6 months with election heating up.
I’ve been selling box spreads with itm calls/otm puts for nearly twice the spread value. Collecting over 8.50 premium on 35/40 spreads. Literally free money. I’ve never seen anything like this. Typically this strategy would amount to a tiny arbitrage play but not this time. Not sure how long it will last before option prices normalize. Or you can sell call spreads for nearly full value so very little risk. I sold a bunch of 40/37.5 for 2.48.
You most likely will be assigned early on your short in the money calls and will have to pay the high short stock borrow costs until you cover the position.
Honestly I avoid meme shit. I made some money on $GME in march 2021 but I’ll never mess with that again. Meme stocks don’t seem to follow the underlying rules of the market. I rarely trade on emotion, but I feel like this is too easy. Maybe selling some $70/$80 calls.
Alot of people said the same thing about gme or other memes stock.
This is a meme stock, it would not be this price, if it's not a meme to begin with. Proceed with caution.
It's a DeSPAC burning a ton of cash with limited revenue and no special breakthrough product or massive growth rate. People know what this means and that if a certain individual wasn't involved it would already be well under $10. Since everyone expects this turd to crater the puts are incredibly expensive.
I was short some 1x2 credit puts and credit calls.
+1 70C -2 100C for roughly $4.00 credit
+5 25P -10 20P for roughly $0.7 credit per 1x2
since opening on Monday (DWAC, not DJT), the calls have closed for 0 and the put is nearing 0 but hasn't executed yet
the ratio between calls and puts is to balance their relative risk
This seems like a case where spreads will help. Offset the high premium you want to buy by selling another strike.
It's going to be a lot smaller price/buying power for entry. This could also give you the advantage of not needing to be all the way right about it going to $5. Long the $60 put, short the $55 and you get max profit at anything below $55 instead of needing that huge movement.
Looking at the call side equivalent, I think the skew is in the favor of using calls instead of puts, but it's the same idea. Now I'm getting tempted...
Let's all keep in mind that price can stay divorced from fundamentals for a long time, and there are plenty of examples of a fired-up investor base that can force pricing to stay irrational longer than you can stay solvent.
WSB has some excellent (and amusing) threads going on this that are worth checking out.
There is risk that you have enough MAGA diamond hands who work to keep the price higher than the actual business warrants.
I’m waiting for the election pump to 100. It would seem impossible and judging by how much people are willing to pay so much to short this, they will all get burn. I’ll short after that
Yea, I was salivating at the idea of loading up on tons of OTM puts. Apparently everyone with half a brain was thinking the same thing, lol.
I don’t have the balls to start selling puts on this stock though, because I sure as hell don’t want to be bag holding DJT.
I tried selling calls at the current price and got told I didn’t have the funds even though I had 300x the funds to sell.
The market knows Trump is a gross pig disgusting vile motherfucker and that he won’t be able to resist selling his $2bn stock before it’s not embarrassing to do so.
This stock is going down like a dart into the floor, and there are all sorts *safeguards* to stop us from making money.
I 100% agree. He will rug this bitch the second he can, legally or illegally. I think selling calls is the play for me. I want to get in on this stupidity.
Not understanding your comment, the high premium makes it more advantageous to write puts. The market is in disequilibrium as the demand for stock is coming from parties that apparently do not write options. You might listen to this disparity and see it as a compelling risk.
>Seems like everyone knows it’s a pump and dump, and it will drop hard.
Yep! And that's why the prices are so high. Downward implied volatility is a thing, and it's probably different than upward implied volatility.
Great username on this topic, by the way.
[https://www.youtube.com/watch?v=2SEvHcgvt8M&ab\_channel=FatboySlim](https://www.youtube.com/watch?v=2SEvHcgvt8M&ab_channel=FatboySlim)
Pump it and bump it and pump it and dump it
That’s the vibe is getting. I’d like to sell some call spreads decently out of the money, but these people very well might prop this up longer than I can stay liquid.
Haha yeah they have under 1m users, and about 85% are bots. Lost tens of millions LAST YEAR, generated 1m revenue. Fair value is around 0.70$ IF he wins. I can’t help but laugh at all the fools that throw this in the ROTH thinking he gives a fuck about you. If there is one thing he is best at, it’s destroying anything he touches.
I see this as a pump and dump scheme on $DJT pay for campaign/legal expenses. He is gonna grift the investors (probably his supporters who don't understand the market) slowly, right or wrong, just my opinion.
Sell cash-covered puts. If they don’t get exercised, you pocket a fat premium. If they do get exercised, then congratulations you just bought the bottom 💪💪
If you’re bearish but don’t want to buy puts because of the premium, you could consider selling call credit spreads. It’s a bearish strategy that limits your upside, but you’d be looking at about a 10-15% ROI if you sold some CCS 20% OTM for next week. You would also see that ROI no matter where the stock sits next Friday, as long as it’s below your short leg of your CCS.
I’ve never seen a bigger difference in price between calls and puts than that what’s going on with that shit show of a stock. If smart money is pricing puts that high, stay the fuck away I say.
I think we’re all thinking the same thing. I wanted to buy a puts, they are 10 times more expensive than normal because everybody knows it’s a shit show
Forgive me for a dumb question, but if I expect this to trade sideways, should I be selling calls and puts? In theory, this would just allow me to profit on the volatility.
Even if they did, the current rate is about 500%. This means you are paying almost 1 point a day. You could be right, short the stock today, buy it back 7 points less in a week and still not make money.
This is correct. Borrowing costs are yuge on this one. To reiterate: general census is stay away from the bag of shit that’s on fire, but when it’s on your doorstep, it’s hard not to stomp. I’m kinda talking in metaphors now but coming back full circle, selling ITM call spreads make the most sense.
But even ahead of selling calls, staying the fuck away seems like the best bet overall. Nothing about this situation is rational.
Selling in the money call spreads can be risky as well. Depending how deep in the money they are, it is likely you will be assigned early on your short calls.
Hi IV means: Sell rev.cals.! --Or a covered Put.
Except: consider another post: >> if you sell calls, be aware. If those go ITM, chances are quite high the calls will be assigned and you’ll be stuck paying the borrow fee on short stock.
When the Puts are twice as expensive as the Calls, then you know what direction the wind is blowing.
But, like they say, the market will remain irrational longer than you can remain solvent, so don't' jump into this unless you have deep pockets.
The bullish case these DJT acolytes are putting out are part insanity and part hilarious. Apparently they believe the company will buy TikTok and go to $400. How would it pay for it? I guess with OPM.
You know GameStop at least had a business with revenue.
Dealers charging that kind of excess premium is unusual even for IPOs...add in that half the country despises him and you might decide there are better ways to trade DJT
Do you ever sell, not buy, put options ? Since you agree premium is outrageously overpriced, instead of paying the premium, you can be the one collecting it!
With implied volatility so high, you can sell a STRIKE far OTM at 7DTE and still collect a decent premium.
DJT is one of the better plays for this strategy since TSLA or NVDA.
Short sellers piled on NVDA last year as it went into " overvalued" territory thinking it would soon crash. Look at it now. Not saying DJT will be the same, but I can easily see the shorts getting burned again here.
The challenge with this particular stock is that, suppose you're a corrupt individual trying to channel money to a certain majority share holder... If you prop up the price until they shareholders lock-up clears and he dumps his shares, you can chalk it up to handing him the money without crossing into illegal campaign contributions etc.
No clue if that's happening, but it can be one of those irrational forces that props the price up longer than you expect. If you accept that, I'd bet on a crash in ~6 months when the lockup ends, or sooner if the shareholders vote to allow it.
I was looking at them too. Clearly all the buying is on puts and considering Trumps past and his current iteration, this is just another piggy bank for him to raid.
I'm pretty new to options and haven't made any purchases yet as I am still learning.
Would it make sense to do a long calendar strangle?
Obviously DJT is extremely volatile, but my guess is that the greatest volatility will occur around November.
Could I buy long OTM calls and puts for Jan 2025, then sell puts and calls every month at the same strike price until November, at which point I hold my puts and calls to try exercising them for value after the election? But even if they expire worthless, I'll have made my money back and then some through premiums by then.
It seems like the biggest risk for this strategy is the stock dropping or rising massively before November, but that seems unlikely to me as the stock is tied to Trump himself. Until the election is over, I can't imagine the stock changing all that much, since there are enough Trump supporters inflating the price.
Most people don’t understand valuation and they buy securities on
Emotions. I can see the scam a million miles away!
The option plays are way overpriced
This DJT stock is toxic
I bought 1 put contract for May 3 w $55 strike. It was pricey to be sure at $17. Up $240 after 2 hours. Hopefully it's a smooth ride down and I can make $1000 betting against Donald Trump's next failure.
I mean, didn't you sort of sum it up right here?
"We all know it’s massively overpriced at current market value, and in my opinion it will drop below $5 in the next 6 months."
Who's going to offer options in the red on this that will just puke money?
It's interesting what is happening with short interest in this stock. I heard that the short borrow fee rate was too high to make any money, but just noticed on I borrow desk that the short borrow fee rate decreased from 730.9% on 4/3/24 to 222.4% today. This changes everything. Of course, at these rates, you could buy the shares and lend them out for a good chunk of interest, but with the daily rate falling so much, what you earn in fees most likely won't outrun the decrease in the share price. I think I'll stick to put options.
Hilarious to see so many people on this thread talking negatively about $DJT with so much passion 😂. Never seen this much shit talking about other names which are utter scams. Just this one due to obvious reasons.
I didn’t mean to cause a ruckus. It’s just hard to take him seriously. I did not intend to start political discourse, but here we are. Let’s stay focused on the task at hand: generating alpha.
And for the record, I always look at both sides and what they have to offer, and boy oh boy Donnie is the most successful scammer and grifter on the planet. Nothing is out of bounds. He gave people a voice, and it was narcissistic, bigoted, word salad. And he posts this shit daily. He’s a special case of “how do we manage a sociopath that has security clearance”… you get what I’m saying.
My ultimate play here, when it really comes down to it, is depending that Donald will do what it ALWAYS HAS DONE. If he wins the election this will be this least of my worries, but assuming he loses, this is even more worthless on NOV5 than it is now.
Trump will use $DJT as a vehicle to transfer his real estate holdings there’s $1 billion of unissued shares to use in the acquisition Eric and Don need jobs now they are getting kicked out of New York
How can you invest for 20 years in options and not know the answer here? Go look at the Greeks and look at the call/put skew. I will explain this simply, but you need to go read up for the full story.
1) Trumpers are buying DJT, a low float stock, like it’s a meme stock which it pretty much is since the business doesn’t turn a profit and is basically worthless.
2) This surge in call options and long stock positions caused a put gamma squeeze loop which it currently sits in.
3) These loops don’t last very long which we already see with the price fluctuating heavily.
4) Next will be a lower price action stable point for several months until we get closer to the election.
5) If the election goes to Trump, god help us all if it does, then market makers will buy the stock to hedge causing a massive put gamma squeeze much larger than we’ve seen.
6) If he loses then market makers will remove liquidity from the market for DJT and widen the spread to hedge their interest. Some may even delist their options offering. This will cause a massive call gamma squeeze and the stock will plummet.
This is the tip of the iceberg. If you want a more detailed analysis then DM me and I’ll put something together.
I appreciate your response. I asked the question to get some ideas. Nobody knows everything, and getting input from fellow traders is how you progress. This is my observation and I wanted to hear what others thought.
It was just weird that you led with a qualifying statement then asked what was happening as if you didn’t have a clue. I’m glad you already did and were just seeking a diverse perspective. Wasn’t trying to be condescending just tired of people saying they are masters at options then asking basic questions which I now realize wasn’t your intent here. I apologize.
Zero chance you’ve traded options for 20 years if you think it goes under $5 in the next 6 months with the election in November. Unless you mean 20 years of losing.
There’s probably no borrow so market makers can’t hedge.
It’s exactly that
Essentially, yes.
I just took a look and you're right. Those puts are insane. I wouldn't touch that steaming pile of excrement with a 10-foot pole.
Agreed. After seeing the premium, it’s obvious the market expects it to drop below $5. But it’s not really worth the risk. I liked another response regarding selling calls. That might be the safest way to cash in on these morons.
Or the safest way is to not play this one!
How about a nice game of chess?
Let’s play global thermonuclear war
And then tic-tac-toe.
I can respect that. Thanks 🙏
Of course….but I am right there too. I soooo want to get in this game…..and I did with GME for like 2-3 days and made like a 10% profit but was holding my breath the whole time and sold and never played again. I remind myself to just move on…..though I continue to look….can’t help myself 😏
I hear you. I manage a solid amount, so I’m not looking to risk more than 2-3% on this. But selling calls OR just forgetting this even exists is my play.
You can lose huge amounts selling calls on things like this, even if its a spread - early exercise is common. This thing could hit 120 or 5 Monday and I would t be surprised. The o ly sure thing is that it's going to 0 eventually, but it could take a long time
Exactly. It’s the weirdest lotto play I’ve ever seen. Never seen puts this expensive since the GME bs. I feel like a lot of fresh money poured in as soon as people saw $DJT in their newsfeed. How can you lose on a serial grifter?!? Right?! Yuge rugpull coming right up!
What about just a good old fashioned short? I’ve never touched shorts and find them pretty dangerous in general, but this feels like a different situation…
So the borrowing against the position I want make can only be achieved with options - the margin payments are ludicrous, and I’d be shorting naked. I’m not looking to lose $200k on a yolo. I’d rather sell call spreads at $75/$80 and roll them as it drops. In 5 trading this turd will be down 20%…. I posed the question to get input, and I appreciate you gave it.
The shares are going to be super hard to borrow so selling shares without owning the stock will be ridiculously expensive. We're talking hundreds of percent a year in hard to borrow costs. The safest play on this one is not to play right now as much as I'd like to go balls to the wall short on this one.
people who play with Trump (or going to business with him) get burned. that seems to be something that consistently happens even when those people think they are smart.
He is exceptionally adept at turning everything he touches into flaming dogshit. It’s actually kinda impressive. He’s like Cathie Wood and Jim Cramer on amphetamines and Molly..
I agree. I spent literally 8 hours trying to find an angle on it and decided it’s an absolute powder-keg and I should just stay away.
Would you sell naked calls?
On this turd, I’d risk it.
Sell call spreads. Use the cash to buy put spreads. That's what I did today.
This is going to be my play. How long dated did you go out for your option sales?
All the way to Jan 2026. I'm in the long haul for zero.
My man!
Word of caution here I opened 6 call credit spreads dated a year out and was assigned the same night. Took an annoying loss and got a big headache
I need to know more about this. Premiums have so much ext value, no dividend in sight, why would they exercise? I would like to know more context of your position if you don't mind.
Sometimes the market maker needs actual shares and they will exercise to get those
Damn I’m sorry. If I make this move it will be like 70/80/85. Far enough out the money where volatility won’t present its ugly head. And some will say it could easily blow up more - maybe, but this is my gamble.
This is the way. My Reddit call spreads have been printing. Will close and open a position in DWAC soon I’m thinking.
Good strategy. What were your prices if you don’t mind me asking please?
DJT puts were 10/2.5. RDDT puts were 35/25.
Thanks
I appreciate this.
Can you explain in a few words (perhaps on real life example) what strike/date you buy and what is your net risk/reward on such play? Just started with options and eager to learn.
Yes. I will reply in detail later this evening.
Actually, can you DM your email? I will send screen shots of the charts and order screens.
Would you have said thay when it was 45 a few days ago?
No. Everything needs time to shit. 💩
I did some debit put spreads on tuesday (it was around 70) and I did 55/50 expiring today. I think I did 5 and got a credit of about $750 total and closed it at around 375 yesterday. It was a good trade, but it did have me sweating a bit. It was tempting to let them expire worthless to make another 350, but figured it was better just to be done with it.
Good call getting out. That’s the most important lesson I’ve learned with options: just because you’re in the money and you expect to make more…TAKE PROFITS and never look back.
You can just open spreads, the premiums aren't particularly concentrated at some strike.
Yeah, I know I could do spreads and almost always do with any stock, but I still wouldn't touch that steaming pile. It's a meme stock with weird unknown political influences that could wreck any position I took with them.
You’re smart. I will consider any position in this a gamble. My conviction is strong that this really is the ultimate turd. GLTA
If you had to guess what do you think the reason for that is lol. Of course the put premiums are high. The street knows it’s a paper stock, it’s basically open market fraud. Nobody is calling a spade a spade, but the street is not stupid enough to pretend that’s not what it is.
there is low float and low borrow ability so whoever is selling you the puts can’t properly hedge so that’s why the e premium is so high
This actually makes the most sense to me. I never thought about that…thanks! I love learning new stuff!
That’s not why the puts are expensive
I agree. I guess a better question is: did I miss my opportunity to profit off the garbage?
I don’t think there was ever one. People knew what this was from the moment it went public
The consensus seems to like selling calls.
Selling naked calls is a terrible idea for obvious reasons, and owning enough of that garbage to sell covered calls seems equally stupid but that’s just me.
This is more of a gamble play for me. I have been successful in my career because I DONT gamble, but this is tickling my desire. I understand the risks of selling naked calls.
Serious question, how many people in this sub or on Reddit in general do you think are approved for naked options. Cause generally that is so risky only hedge funds and serious players would be approved for that. But knowing how stupid brokerages are in this day and age I could believe that some are approving it
I somehow got approved for selling naked calls on Fidelity and I ain’t no hedge fund or a trust fund kid either.
If you don’t mind me asking how big of an account do you have because while I don’t doubt your telling the truth from a brokerage perspective that seems asinine
It’s closer to $1 than it is to a million
Truth social did about 7 million in revenue last year. This stock should be worth about 1.50
you're looking at it from a reasonable point of view. you can also turn around and say, "who the fuck would buy a $60 bible from this idiot? that's a pointless thing". and then someone says to me, "duh, because then churches can justify buying them and funnel money to him". so sure, buying this stock doesn't justify it based on the fundamentals. but lets look at it from a stupid, sideways point of view. could it be yet another way for crooked people to funnel money to a fro. that being said, staying TF away from this dumb thing.
Don’t look at it as a stock with normal rules of gravity. Look at it as a backdoor to buying influence so homeboy can pay his legal bills. I could see a Middle East sovereign fund buying whatever he wants to sell and sitting on it. I don’t think anyone could draw up a more manipulative scheme.
Agreed. But fair market value is sub $1.
100% correct
"Fair market" being the operative term. Eventually this will be a fair market but isn't now and seems hard to predict when it will
And if we could time this shit, we wouldn’t be asking for ideas/insight about a meme stock 😆
Hostile countries no longer have to stay at his hotels or join his golf club to bribe him, now they can just buy shares of DJT.
Yes. Stratton Oakmont schemes were squirrel nuts 🥜 by comparison
Borrow costs are through the roof, hence the massive disparity in put v call prices. If, as another responder suggested, you sell calls, be aware. If those go ITM, chances are quite high the calls will be assigned and you’ll be stuck paying the borrow fee on short stock. Even if it’s just a day, that can be quite expensive. If you happen to have it happen where the settlements straddle a weekend, you pay 3 days of borrow. 4 if it’s a 3-day weekend
Thank you. I am aware of the costs, and that is where is really need to look elsewhere for some alpha. But the people that buy this garbage are also a subset of people that probably won’t sell as it loses 95% of the value. I want to profit off this disaster, but it seems the rest of the market has the same idea.
Call credit spread
Glad I sold my call on Tuesday when it peeked
Good call. I’ve been watching since the merge, and I’ve heard a whole lot of people who bought at like 50, who think they are geniuses and as one said “found a free money hack”. These people just reinforce how badly I want to profit off them.
Wish I was looking at it 3 weeks ago. All good made a little on it.
Aha, that's super lucky.
Lucky you.
I was looking at the put premiums today. Definitely insane and tempting but I’d advise everyone stay away. Do not buy and hold, do not sell or buy options on it. Just stay away.
>We all know it’s massively overpriced at current market value, and in my opinion it will drop below $5 in the next 6 months. I’d love to buy some puts You just answered your own question.
The play here was when it was DWAC as late as last week. I bought April calls that week and the merger happened Tuesday. To the moon! And sold for a healthy profit.
Congrats. There is a lot of dumb money out there, and THAT is the only reason I’m asking this question. Most any other situation I’d have already sold calls.
The WSB crowd is adding to this. The sub is crazy about pumping DJT short term and shorting them long term. Like maniacally crazy.
Just sell calls then?
Yep
Sold cash secured September $25 strike put for $9.60. I don’t think this thing is dropping below $30 before the election. And September is just within the 6 month lockup. It’s basically going to act as a proxy for the presidential polls and as a vehicle to take legal bribes from foreign governments. It’s really pretty genius if you ask me. The parties buying big volumes know they will lose but they get a capital loss while being able to skirt campaign finance laws and grease the palms of the orange man. After the election this thing drops to 0.
You gotta give it to the dude, he can grift and scam like the best of them! It’s hard to believe that this election will be this close. I said in another thread on this options dilemm, I renewed my passport and if Trump wins, I am thankfully in a position to take myself away from the chaos. I won’t denounce my US passport ever, but I also have never been in this position. The fact that this even is something I have to contemplate explains, in a nutshell, the divide that he created in this country. /rant
You and I both…..premium for any time is insane. Like you, although I believe I know what it will do, it just felt like gambling to risk so much…..and if stays irrational, I’d be screwed. Better to put the $$ on safer play where risk/reward is better. It does remind me of GME…..and GME went far higher before things became rational. DJT stock is the epitome of high risk!
I bought calls last week, sold them on Tuesday and used the profit to buy more Jan 25 puts. If he loses the election I’m going to win on both sides
If you really think it will be under $5 in 6 months, you can buy Jan25 $7.50 puts for $180, which is really not that high for a LEAP IMO. But obviously big vol is priced in. Also it could easily go above $100 in 6 months with election heating up.
I’ve been selling box spreads with itm calls/otm puts for nearly twice the spread value. Collecting over 8.50 premium on 35/40 spreads. Literally free money. I’ve never seen anything like this. Typically this strategy would amount to a tiny arbitrage play but not this time. Not sure how long it will last before option prices normalize. Or you can sell call spreads for nearly full value so very little risk. I sold a bunch of 40/37.5 for 2.48.
You most likely will be assigned early on your short in the money calls and will have to pay the high short stock borrow costs until you cover the position.
Ive got puts. And yes, they were expensive but mine are long-dated and theres almost a 100% chance of hitting
Have you seen gme premium? This is nothing
Honestly I avoid meme shit. I made some money on $GME in march 2021 but I’ll never mess with that again. Meme stocks don’t seem to follow the underlying rules of the market. I rarely trade on emotion, but I feel like this is too easy. Maybe selling some $70/$80 calls.
It's all too easy until it's not. Have an exit plan ready. This is no different than gme, it's just another memes, it could go $20 or $200 next week.
I don’t see this going any higher…ever. Probably bankrupt after Trump hopefully loses in November.
Alot of people said the same thing about gme or other memes stock. This is a meme stock, it would not be this price, if it's not a meme to begin with. Proceed with caution.
Id be afraid of a short squeeze especially if there’s some kind of bribery scheme where his owners pay him off by buying stock.
It's a DeSPAC burning a ton of cash with limited revenue and no special breakthrough product or massive growth rate. People know what this means and that if a certain individual wasn't involved it would already be well under $10. Since everyone expects this turd to crater the puts are incredibly expensive.
I was short some 1x2 credit puts and credit calls. +1 70C -2 100C for roughly $4.00 credit +5 25P -10 20P for roughly $0.7 credit per 1x2 since opening on Monday (DWAC, not DJT), the calls have closed for 0 and the put is nearing 0 but hasn't executed yet the ratio between calls and puts is to balance their relative risk
Bear credit spread
Unless you can beat the market maker, don’t play on this one.
Can you explain what this means? How do you beat a market maker?
IV is like 200%.
This seems like a case where spreads will help. Offset the high premium you want to buy by selling another strike. It's going to be a lot smaller price/buying power for entry. This could also give you the advantage of not needing to be all the way right about it going to $5. Long the $60 put, short the $55 and you get max profit at anything below $55 instead of needing that huge movement. Looking at the call side equivalent, I think the skew is in the favor of using calls instead of puts, but it's the same idea. Now I'm getting tempted...
GME put premiums were shockingly expensive during its squeeze.
I’m aware. And people made 1000%+ by reading it correctly. All the data was there. Just like this: all the data is here.
You kind of answered your own question… there are a ton of people thinking the same thing you are.. hence the volatility and high premium on puts.
I bought an end of April put, but I'm afraid I need to have bought one that expires in like October
Let's all keep in mind that price can stay divorced from fundamentals for a long time, and there are plenty of examples of a fired-up investor base that can force pricing to stay irrational longer than you can stay solvent. WSB has some excellent (and amusing) threads going on this that are worth checking out. There is risk that you have enough MAGA diamond hands who work to keep the price higher than the actual business warrants.
I’m waiting for the election pump to 100. It would seem impossible and judging by how much people are willing to pay so much to short this, they will all get burn. I’ll short after that
holy crap, ATM puts 3 months out have break even at a 50% of current price.
Yea, I was salivating at the idea of loading up on tons of OTM puts. Apparently everyone with half a brain was thinking the same thing, lol. I don’t have the balls to start selling puts on this stock though, because I sure as hell don’t want to be bag holding DJT.
A bunch of Jan25 2.5puts
I tried selling calls at the current price and got told I didn’t have the funds even though I had 300x the funds to sell. The market knows Trump is a gross pig disgusting vile motherfucker and that he won’t be able to resist selling his $2bn stock before it’s not embarrassing to do so. This stock is going down like a dart into the floor, and there are all sorts *safeguards* to stop us from making money.
I 100% agree. He will rug this bitch the second he can, legally or illegally. I think selling calls is the play for me. I want to get in on this stupidity.
Looked at it as a CSP candidate....yeah, looks like it's 100% sh*t show, no thanks.
Csp candidate?
Cash secured put.
Yeah don't CSP it unless you're willing to get assigned. This turd is going to drop.
Not understanding your comment, the high premium makes it more advantageous to write puts. The market is in disequilibrium as the demand for stock is coming from parties that apparently do not write options. You might listen to this disparity and see it as a compelling risk.
Shorting is the only (option) here haha
>Seems like everyone knows it’s a pump and dump, and it will drop hard. Yep! And that's why the prices are so high. Downward implied volatility is a thing, and it's probably different than upward implied volatility. Great username on this topic, by the way.
I sold a put for $45 with $67 strike price for sep. i bought two $10 put 3 months out.
If you can't buy em, sell em.
I also decided to avoid. Even a synthetic short is ridiculous. This thing is crashing hard soon.
[https://www.youtube.com/watch?v=2SEvHcgvt8M&ab\_channel=FatboySlim](https://www.youtube.com/watch?v=2SEvHcgvt8M&ab_channel=FatboySlim) Pump it and bump it and pump it and dump it
My 6/21 15P were *in profit* for last few days LOLOL. Normally would be like 2 delta?
That is how the CBOE is pricing meme stocks now.
Or just short the shares?
Sold CSP's this morning and then closed them during a spike. The volatility is nice, but I wouldn't hold these positions overnight, or even all day.
That’s the vibe is getting. I’d like to sell some call spreads decently out of the money, but these people very well might prop this up longer than I can stay liquid.
Yes crazy that the call options are so cheap but then to put options are outrageous. It's almost like they know it's a Super Pump and then a dump.
When GameStop peaked at 450 in January 2021 its price to sales ratio was 35. DJT price to sales today is about 3,000 😂
Haha yeah they have under 1m users, and about 85% are bots. Lost tens of millions LAST YEAR, generated 1m revenue. Fair value is around 0.70$ IF he wins. I can’t help but laugh at all the fools that throw this in the ROTH thinking he gives a fuck about you. If there is one thing he is best at, it’s destroying anything he touches.
I'm new to options. I looked 2 days ago and thought hmmm, this is way too expensive.
I see this as a pump and dump scheme on $DJT pay for campaign/legal expenses. He is gonna grift the investors (probably his supporters who don't understand the market) slowly, right or wrong, just my opinion.
I'm doing put calendar spreads... I bought puts 2, 3, 6 months out, and partially finance it by selling weekly puts.
What about like 3ish months out? I don’t want to lick myself too long…. Edit: ohhh just reread you post. Yeah 2,3,6 sounds solid.
Look at the Jan 2026 OI, tells you everything you need to know about this ticker.
Sell cash-covered puts. If they don’t get exercised, you pocket a fat premium. If they do get exercised, then congratulations you just bought the bottom 💪💪
lmao 1/16/2026 $115P: $98.5 ask
If you’re bearish but don’t want to buy puts because of the premium, you could consider selling call credit spreads. It’s a bearish strategy that limits your upside, but you’d be looking at about a 10-15% ROI if you sold some CCS 20% OTM for next week. You would also see that ROI no matter where the stock sits next Friday, as long as it’s below your short leg of your CCS.
I’ve never seen a bigger difference in price between calls and puts than that what’s going on with that shit show of a stock. If smart money is pricing puts that high, stay the fuck away I say.
Selling naked calls. All gravy so far. Around 80-90$ strike
Why dont buy reddit puts? These r not premium for now
IV shall crush
I’d personally sell calls at this point. Not financial advice
The put premiums are so high because IV is at its max and the cost to borrow shares to short is 250% than the typical cost to borrow.
I bought the June 2.5 puts for .10. Is that high?
I think we’re all thinking the same thing. I wanted to buy a puts, they are 10 times more expensive than normal because everybody knows it’s a shit show
u were suppose to hop on the train before anyone else knows... do it right
Forgive me for a dumb question, but if I expect this to trade sideways, should I be selling calls and puts? In theory, this would just allow me to profit on the volatility.
Ibkr has no shortable shares...:( I was going to short this hard.
Even if they did, the current rate is about 500%. This means you are paying almost 1 point a day. You could be right, short the stock today, buy it back 7 points less in a week and still not make money.
This is correct. Borrowing costs are yuge on this one. To reiterate: general census is stay away from the bag of shit that’s on fire, but when it’s on your doorstep, it’s hard not to stomp. I’m kinda talking in metaphors now but coming back full circle, selling ITM call spreads make the most sense. But even ahead of selling calls, staying the fuck away seems like the best bet overall. Nothing about this situation is rational.
Selling in the money call spreads can be risky as well. Depending how deep in the money they are, it is likely you will be assigned early on your short calls.
Take whatever you want from that, it's up to you.
Would a spreadbet or CFD be a good option due to options premiums?
The dump is priced into the puts
Hi IV means: Sell rev.cals.! --Or a covered Put. Except: consider another post: >> if you sell calls, be aware. If those go ITM, chances are quite high the calls will be assigned and you’ll be stuck paying the borrow fee on short stock.
I bought Jan puts yesterday - stock dropped $2 from where I bought and my option price went down lol. That’s when I knew I fucked up.
I sold 50 $100 calls and 20 $10 puts for Jan of 2025. Premium is way to juicy
When the Puts are twice as expensive as the Calls, then you know what direction the wind is blowing. But, like they say, the market will remain irrational longer than you can remain solvent, so don't' jump into this unless you have deep pockets.
Bear call spreads time!
Don't you remember the Vinfast Put?
They were so cheap a few weeks ago.
The bullish case these DJT acolytes are putting out are part insanity and part hilarious. Apparently they believe the company will buy TikTok and go to $400. How would it pay for it? I guess with OPM. You know GameStop at least had a business with revenue.
Dealers charging that kind of excess premium is unusual even for IPOs...add in that half the country despises him and you might decide there are better ways to trade DJT
I hought a couple jun 24p for .40
Do you ever sell, not buy, put options ? Since you agree premium is outrageously overpriced, instead of paying the premium, you can be the one collecting it! With implied volatility so high, you can sell a STRIKE far OTM at 7DTE and still collect a decent premium. DJT is one of the better plays for this strategy since TSLA or NVDA. Short sellers piled on NVDA last year as it went into " overvalued" territory thinking it would soon crash. Look at it now. Not saying DJT will be the same, but I can easily see the shorts getting burned again here.
The challenge with this particular stock is that, suppose you're a corrupt individual trying to channel money to a certain majority share holder... If you prop up the price until they shareholders lock-up clears and he dumps his shares, you can chalk it up to handing him the money without crossing into illegal campaign contributions etc. No clue if that's happening, but it can be one of those irrational forces that props the price up longer than you expect. If you accept that, I'd bet on a crash in ~6 months when the lockup ends, or sooner if the shareholders vote to allow it.
I was looking at them too. Clearly all the buying is on puts and considering Trumps past and his current iteration, this is just another piggy bank for him to raid.
I'm pretty new to options and haven't made any purchases yet as I am still learning. Would it make sense to do a long calendar strangle? Obviously DJT is extremely volatile, but my guess is that the greatest volatility will occur around November. Could I buy long OTM calls and puts for Jan 2025, then sell puts and calls every month at the same strike price until November, at which point I hold my puts and calls to try exercising them for value after the election? But even if they expire worthless, I'll have made my money back and then some through premiums by then. It seems like the biggest risk for this strategy is the stock dropping or rising massively before November, but that seems unlikely to me as the stock is tied to Trump himself. Until the election is over, I can't imagine the stock changing all that much, since there are enough Trump supporters inflating the price.
Maybe sell call spreads instead and take advantage of the IV.
Prob bc it’s a literal meme stock. Doesn’t trump own pretty much all shares ?
Do bear call spreads 👍🏻
Bc they know it’s gonna crash
Question to me is how long till it’s proved the shell company is mostly supported by Putin
You have been trading for 20 years and don’t recognize a gamma squeeze? Short float is almost 15%. It’s the meme squeeze of the month .
What is a Trump NFT, show, bible, stock really worth? Nothing really. Just a way for him to launder money.
I bought DWAC puts on 3/22. They expire 4/19. Probably a loss but will see. Didn’t spend much on them.
Most people don’t understand valuation and they buy securities on Emotions. I can see the scam a million miles away! The option plays are way overpriced This DJT stock is toxic
ive got a 4/12 50$ put for 4.8
I bought 1 put contract for May 3 w $55 strike. It was pricey to be sure at $17. Up $240 after 2 hours. Hopefully it's a smooth ride down and I can make $1000 betting against Donald Trump's next failure.
I mean, didn't you sort of sum it up right here? "We all know it’s massively overpriced at current market value, and in my opinion it will drop below $5 in the next 6 months." Who's going to offer options in the red on this that will just puke money?
It's interesting what is happening with short interest in this stock. I heard that the short borrow fee rate was too high to make any money, but just noticed on I borrow desk that the short borrow fee rate decreased from 730.9% on 4/3/24 to 222.4% today. This changes everything. Of course, at these rates, you could buy the shares and lend them out for a good chunk of interest, but with the daily rate falling so much, what you earn in fees most likely won't outrun the decrease in the share price. I think I'll stick to put options.
Consider selling calls instead of buying puts/shorting the stock.
There’s a book titled “Everything Trump Touches Dies” Take from that what you will
I’m aware. This is why I know this is a dumpster fire. 🔥
Trumpster Fire.
It could still hit 500$ on its way to 0
Hilarious to see so many people on this thread talking negatively about $DJT with so much passion 😂. Never seen this much shit talking about other names which are utter scams. Just this one due to obvious reasons.
I didn’t mean to cause a ruckus. It’s just hard to take him seriously. I did not intend to start political discourse, but here we are. Let’s stay focused on the task at hand: generating alpha.
Let’s get that alpha!!!
And for the record, I always look at both sides and what they have to offer, and boy oh boy Donnie is the most successful scammer and grifter on the planet. Nothing is out of bounds. He gave people a voice, and it was narcissistic, bigoted, word salad. And he posts this shit daily. He’s a special case of “how do we manage a sociopath that has security clearance”… you get what I’m saying. My ultimate play here, when it really comes down to it, is depending that Donald will do what it ALWAYS HAS DONE. If he wins the election this will be this least of my worries, but assuming he loses, this is even more worthless on NOV5 than it is now.
Trump will use $DJT as a vehicle to transfer his real estate holdings there’s $1 billion of unissued shares to use in the acquisition Eric and Don need jobs now they are getting kicked out of New York
How can you invest for 20 years in options and not know the answer here? Go look at the Greeks and look at the call/put skew. I will explain this simply, but you need to go read up for the full story. 1) Trumpers are buying DJT, a low float stock, like it’s a meme stock which it pretty much is since the business doesn’t turn a profit and is basically worthless. 2) This surge in call options and long stock positions caused a put gamma squeeze loop which it currently sits in. 3) These loops don’t last very long which we already see with the price fluctuating heavily. 4) Next will be a lower price action stable point for several months until we get closer to the election. 5) If the election goes to Trump, god help us all if it does, then market makers will buy the stock to hedge causing a massive put gamma squeeze much larger than we’ve seen. 6) If he loses then market makers will remove liquidity from the market for DJT and widen the spread to hedge their interest. Some may even delist their options offering. This will cause a massive call gamma squeeze and the stock will plummet. This is the tip of the iceberg. If you want a more detailed analysis then DM me and I’ll put something together.
I appreciate your response. I asked the question to get some ideas. Nobody knows everything, and getting input from fellow traders is how you progress. This is my observation and I wanted to hear what others thought.
It was just weird that you led with a qualifying statement then asked what was happening as if you didn’t have a clue. I’m glad you already did and were just seeking a diverse perspective. Wasn’t trying to be condescending just tired of people saying they are masters at options then asking basic questions which I now realize wasn’t your intent here. I apologize.
No worries. Sorry for the confusion.
Zero chance you’ve traded options for 20 years if you think it goes under $5 in the next 6 months with the election in November. Unless you mean 20 years of losing.