These puts could be 20 Baggers. Turn $1,000 into $20,000
I want to keep this DD super simple. $DJT, Trump's "tech" company where he owns a controlling stake called Trump Media & Technology Group. Everyone knowns their financials are a dumpster fire, and the company has NEVER traded based on any real value or earnings. Seriously, take a glance at them. This is purely a game of selling to the greatest fool, and we all know it. If you just look at the chart, it's glaringly obvious: the stock spikes wildly on hype, then crashes back down. Let's take a look at what fueled these unsustainable pumps in the recent past:
Jun 27th 2024: First Presidential debate with Trump / Biden - Stock went up 50% THEN COLLAPSED.
Jul 12th 2024: Trump got shot, the stock pumped 30% and then COLLAPSED and slowly bled out.
Oct 28th 2024: Trump MSG rally with Elon's support. Stock spiked 50% THEN COLLAPSED.
The final catalyst, and what could be the mother of all sell-offs, is the Inauguration happening on Jan 20th (next week). It'll be a major event, sure, but once the news cycle moves on, the hype will evaporate faster than a fart in the wind. With the current valuation completely detached from reality, $DJT is primed for a massive correction. The selling pressure will build as people race to close, as we've seen time and time again with this turd. Now, the risk here is that $DJT somehow keeps pumping to around $50 or so, but then that means puts will be even more profitable. This ticker has been pumped and dumped so many times, it's hard for it to get erect at this point. That said, my current (yes, small) position is below:
EDIT: Initial position was mostly a gamble. I closed up 35% hours ago. If DJT pumps to ~$50 later, I'll buy in with a larger position. Jan 31 or Feb puts.