Will Trump concept stocks plummet by 95%? Deep discount options are prophecies or trading strategies
123458001
发表于 2024-3-26 21:21:11
1223
0
0
Trump was overjoyed on Monday and Wednesday: nearly $500 million in margin was reduced to $170 million by the appellate court, and the stock price of DWAC, which was listed on a backdoor, surged by 35%. Coupled with winning the golf championship over the weekend, Trump is now proud of himself.
Especially on Monday, DWAC's stock price reached a high of $49.95, fully demonstrating the market's pursuit of the Trump brand. And this helped Trump successfully squeeze into the world's top 500 billionaires.
Trump's Media Technology Group (TMTG) and Shell Company DWAC announced on Monday that their business merger and acquisition deal has been completed. Starting from Tuesday, Trump Media Technology Group, which has completed a reverse merger, will be listed for trading on the NASDAQ exchange under the trading code "DJT". Trump holds 58% of DJT's equity.
But interestingly, while DWAC's stock price surged on Monday, the market also saw a frenzy of buying put options on DWAC's stock price.
According to statistics, the trading volume of DWAC put options that expire on April 19th and have an exercise price of $2.50 is as high as 15321. The trading volume of options that expire on the same day but have an exercise price of $5 is also over 5700. This means that DWAC's stock price will decrease by 95% and 90% respectively compared to the current level.
This seems to represent a bleak future for DWAC, but traders are betting that this Trump concept stock will lose almost all its value in just three weeks without any fundamental basis on its own.
Industry insiders suggest that traders may not expect to be able to execute these put options.
A type of hedging
Considering the significant fluctuations in DWAC stocks since mid January, it seems not difficult to imagine a decline in stock prices.
However, Steve Sosnick, Chief Strategist at Yingtou Securities, pointed out that some traders may only purchase put options to meet the broker's requirements. Because when facing highly volatile targets, brokers may prohibit traders from selling unsecured naked options.
He explained that traders can purchase put options at much lower than normal prices as an alternative to turning high volatility into theoretically limited risk trading.
Sosnick also pointed out that this method is just a less common type of trading, but given that the stock is currently in an abnormal trading atmosphere, it may be able to deceive some people's risk management systems.
As of Monday, approximately 396000 option contracts have changed hands in the market, almost 10 times the average level of the past month. Among them, the number of put options exceeds that of call options, and the increase in implied volatility of a one month put option is higher than that of a call option, indicating that some people hope to hedge against the risk of future stock price declines.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- Trump concept stocks surge by over 20%
- Global market: The three major US stock indices closed slightly higher, with most large technology stocks and weight loss concept stocks rising
- Pre market monkeypox concept stocks in the US stock market saw an expansion in gains, with GeoVax Labs rising over 60% and Chimerix rising nearly 18%
- Suddenly skyrocketing by 60%! Monkeypox concept stocks rise again, WHO urges to increase vaccine production
- Trump concept stocks have mysteriously surged by 13%? The US election situation is quietly reversing
- Suspend the supply of influenza vaccine? Sanofi responds! Flu concept stocks rise, with two stocks hitting the limit up
- Goldman Sachs rarely makes a statement that A-shares have been sold out. The leading sectors are these! Meta releases latest VR device, concept stocks for institutional clustering research revealed
- China introduces favorable policies, luxury concept stocks generally soar, LVMH rises 11%
- Trump concept stocks continued to rise in the US stock market, with Phunware rising by over 16%
- Trump concept stocks fell in pre-market trading in the US stock market
-
苹果知名分析师郭明錤周四(10月31日)在社交媒体上发文表示,苹果明年可能会减少对芯片制造商博通Wi-Fi芯片的依赖,并推出自己的处理器。 郭明錤在社交媒体平台X上写道,“在2025年下半年的新产品(例如iPh ...
- uturn
- 前天 14:42
- 支持
- 反对
- 回复
- 收藏
-
10月30日,小鹏汽车生态企业小鹏汇天宣布,旗下分体式飞行汽车“陆地航母”即将亮相2024中国航展,11月12日将在中国航展第二展区(斗门莲洲)进行全球首次公开飞行,同时“陆地航母”也将在珠海国际航展中心8号 ...
- yxtianyouyou
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
交易所监管文件显示,当地时间11月1日,亚马逊创始人杰夫·贝索斯拟出售约1635万股亚马逊股票,预计套现约30.5亿美元。今年7月,贝索斯已申请额外出售约2500万股亚马逊股票,按当时股价计算可套现约50亿美元。 ...
- blueskybb
- 昨天 09:27
- 支持
- 反对
- 回复
- 收藏
-
近日,凯撒海湾目的地(山东)运营管理有限责任公司(简称“凯撒海湾”)与携程旅悦集团签署战略合作协议,双方将围绕“海上目的地运营”、“旅游产品与服务创新”、“研学旅行”、“日韩及海外旅游市场开拓”等 ...
- llyyy2008
- 昨天 11:01
- 支持
- 反对
- 回复
- 收藏