Rooting for Donald Trump to fail has rarely been this profitable.
Just ask a hardy band of mostly amateur Wall Street investors who have collectively made tens of millions of dollars over the past month by betting that the stock price of his social media business — Truth Social — will keep dropping despite massive buying by Trump loyalists and wild swings that often mirror the candidate’s latest polls, court trials and outbursts on Truth Social itself.
Several of these investors interviewed by The Associated Press say their bearish gambles using “put” options and other trading tools are driven less by their personal feelings about the former president (most don’t like him) than their faith in the woeful underlying financials of a company that made less money last year than the average Wendy’s hamburger franchise.
Made less money than the average Wendy’s hamburger franchise
lol
Much worse than that. Had less revenue than the average Wendy’s hamburger franchise.
https://www.fastcompany.com/91113771/traders-hating-trump-media-making-millions-betting-against-it
It’s all there in the Sarasota, Florida-based company’s 100-page financial report: A firehose of losses, $58 million last year, on minuscule revenue of $4 million from advertising and other sources.
Your average Wendy’s hamburger franchise may have more than $4 million in revenue a year, but it definitely isn’t losing $58 million a year.
I read somewhere that there are individual Youtubers who made more than Truth Social did last year.
I’m just surprised more people didn’t do this.
I am in a position where I can invest in the market and have an account at etrade, so I might be able to short stocks? But I don’t know how I would go about doing that. I knew from day one this would be a fantastic short opportunity, but I didn’t know how to do that so didn’t bother.
It’s a HUGE gamble, if it goes up you could be millions in debt.
It seems obvious it would go down right?
But, there’s always the possibility that a foreign entity (Russia) launders money to him by buying up a shit ton of his stock and drives the price up.
That would ruin the lives of people trying to make money by shorting it.
I wouldn’t encourage anyone to gamble in this economy, but especially not on a con-man with connections to very rich foreign governments who have a vested interest in making sure he makes money.Just look at Tesla. Not as absurd as this, but still absurd. People have lost entire fortunes betting against wildly overvalued stocks…
The market can remain irrational longer than I can remain solvent.
Pro tip: if you’re reading about it on mainstream news, it’s probably too late to jump on the train.
Don’t bother, it’s one of the most shorted stocks right now so the price to short it is comparably high.
If you don’t understand how shorting stocks work then don’t do it. Better to just buy a bunch of put options or derivatives that go up in value when the stock drops and have a built in stop loss.
If you short a stock directly the theoretical losses are infinite and the max profit is only the money you received from the short sell.
Unsurprisingly, the put options were crazy expensive at IPO.
Gambling is still gambling no matter how much of a “sure thing” it seems like it would be. The more “obvious” something is, the less pay-off and higher cost there would be.
Plus, the money from gambling on the stock market comes from all the people being financially ruined by choosing wrong. Is that where you want your money to come from? Would you be able to stomache that?
Plus, the money from gambling on the stock market comes from all the people being financially ruined by choosing wrong. Is that where you want your money to come from? Would you be able to stomache that?
In any normal circumstances, no, but I’ve very little empathy for anyone who still supports Donald Trump. Someone will inevitably take their money because they’re idiots, it might as well be me.
The only people who actually believe DJT is worth anything (both the person and the stock) are typically the kind of person I’m OK with screwing over. They gleefully cheer when harm comes to people I love, so I have no problem doing the same to them. Plus, his tax cuts for the wealthy actually increased my taxes a noticeable amount (the hard limit on tax exemption for high state tax areas), so I would feel like I’m just getting mine back from the people who voted for him.
