{"id":2230870,"date":"2024-04-26T12:10:02","date_gmt":"2024-04-26T16:10:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-truth-social-bettors-have-made-more-than-200-million-shorting-stock\/"},"modified":"2024-04-26T12:15:01","modified_gmt":"2024-04-26T16:15:01","slug":"trumps-truth-social-bettors-have-made-more-than-200-million-shorting-stock","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-truth-social-bettors-have-made-more-than-200-million-shorting-stock\/","title":{"rendered":"Investors in Trump&#8217;s Truth Social platform have profited over $200 million by shorting stocks"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrumps-truth-social-bettors-have-made-more-than-200-million-shorting-stock%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2230870&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Investors are \u200dintrigued by Donald Trump&#8217;s Truth Social platform\u200d but\u2064 for different reasons. They \u200dare\u200c focusing on unusual metrics, prompting many\u200d to\u200b short the stock and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nrcc-battleground-poll-republicans-make-substantial-gains-among-hispanic-voters\/\" title=\"NRCC Battleground Poll: Republicans Make Substantial Gains Among Hispanic Voters\">make substantial gains<\/a>. According to \u200dthe Associated Press, short-sellers have earned around $200 million. \u200cSome investors have opted for &#8220;put&#8221; options\u2063 to predict stock prices accurately and \u2062profit accordingly. Investors are\u200c captivated by Donald Trump&#8217;s\u2062 Truth Social platform\u200b for\u200c unconventional reasons. This curiosity has led \u2063many to short the stock, resulting in significant \u200bprofits. The Associated Press reports that\u200c short-sellers have accumulated \u200bapproximately $200 million in earnings. Additionally, some\u200d investors have leveraged\u200c &#8220;put&#8221; options to forecast stock prices accurately\u2062 and capitalize on the market trends.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/2980623\/pce-inflation-soars-highest-level-november-investors-price-2-in-5-chance-no-rate-cuts-election-day\/\" target=\"_blank\" rel=\"noopener\" title>Investors<\/a> have taken a keen interest in former President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\" target=\"_blank\" rel=\"noopener\" title>Donald Trump\u2019s<\/a> <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/truth-social\/\" target=\"_blank\" rel=\"noopener\" title>Truth Social<\/a> \u2014 but not in the way he might like.<\/p>\n<p>With <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/markets\" target=\"_blank\" rel=\"noopener\" title=\"investors\">investors<\/a> keying in on metrics that don\u2019t add up on DJT, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/customer-visits-to-starbucks-dunkin-drop-amid-record-high-inflation\/\" title=\"Customer Visits to Starbucks, Dunkin\u2019 Drop Amid Record-high Inflation\">stock ticker<\/a> for Truth Social, many have decided to short the stock in a ploy to stuff their pockets with cash. <\/p>\n<p>And it\u2019s been working.<\/p>\n<p>An analysis from the <em>Associated Press<\/em> places profits from short-sellers at about $200 million, not including the upfront premiums, which have been large due to the stock\u2019s perceived overvaluation. <\/p>\n<p>A few investors interviewed by the <em>AP<\/em> have bought \u201cput\u201d options, which are designed to pay out if investors can predict the price of a stock correctly.<\/p>\n<p>For example, one buys a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-judge-brings-united-airlines-vaccine-mandate-plans-to-a-halt-with-new-order\/\" title=\"Federal Judge Brings United Airlines' Vaccine Mandate Plans to a Halt with New Order\">put option<\/a> for an <a href=\"https:\/\/www.investopedia.com\/terms\/p\/put.asp\" target=\"_blank\" rel=\"noopener\" title>upfront<\/a> premium on a stock for a \u201cstrike price\u201d of $5 for a certain date when the stock is trading at $8. If the stock dips below $5, the option is \u201cin-the-money,\u201d and the option holder may close the position by selling 100 shares of stock per option at $5 for a potential profit.<\/p>\n<p>But the option could fail, and if the stock doesn\u2019t move from $8 or goes up, the put is worthless and expires at zero on the given date, generating a loss of the upfront premium paid.<\/p>\n<p>Bettors gambling on the DJT stock are pointing to its continual fall since it reported a revenue of only $4.1 million on April 1 and a potential influx of new stock that will boost Trump\u2019s net worth but devalue the stock.<\/p>\n<p>\u201cThis <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/we-dont-take-anything-down-jen-psaki-dodges-peter-doocys-question-on-flagging-misinformation-for-social-platforms\/\" title=\"\u2018We Don\u2019t Take Anything Down\u2019: Jen Psaki Dodges Peter Doocy\u2019s Question On Flagging  Misinformation For Social Platforms\">company makes<\/a> no money. \u2026 It makes no sense,\u201d said Boise, Idaho, ad executive Elle Stange, who estimates she has made $1,300 betting against the Truth Social stock. <\/p>\n<p>\u201cHe\u2019s not as great a businessman as he thinks,\u201d Stange said. \u201cA lot of his businesses go belly up, quickly.\u201d<\/p>\n<p>Jeff Cheung, a Seattle IT security specialist, told the outlet the stock \u201cis guaranteed to go to zero.\u201d<\/p>\n<p>Trump Media CEO Devin Nunes recently raised alarms that \u201cnaked\u201d puts, puts in which <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pinkerton-like-jimmy-carter-joe-biden-lost-the-energy-war-with-russia\/\" title=\"Pinkerton: Like Jimmy Carter, Joe Biden Lost the Energy War with Russia\u00a0\">investors don\u2019<\/a>t actually have a share in the company, have been deployed illegally, though it is a legal practice, according to the Securities and Exchange Commission.<\/p>\n<p>\u201cIf we have to go to the Congress or if we have to take legal action, we will do whatever it takes to defend our retail investors,\u201d Nunes said in an interview with Newsmax.<\/p>\n<p><a href=\"http:\/\/washingtonexaminer.com\/\" target=\"_blank\" rel=\"noopener\" title><strong>CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/strong><\/a><\/p>\n<p>The company\u2019s stock hasn\u2019t faced a monumental drop until recently, likely because of Trump <a href=\"https:\/\/www.salon.com\/2024\/04\/15\/every-time-i-buy-more-the-price-drops-more-supporters-grapple-with-truth-social-losses\/\" target=\"_blank\" rel=\"noopener\" title>supporters\u2019<\/a> ardent faith in the business, with some buying it as a campaign contribution of sorts or to support Trump himself.<\/p>\n<p>Trump\u2019s net worth has bounced around with the stock\u2019s rise and falls as he holds the majority of shares in Truth Social, with recent Bloomberg <a href=\"https:\/\/www.bloomberg.com\/billionaires\/profiles\/donald-j-trump\/\" target=\"_blank\" rel=\"noopener\" title>estimates<\/a> placing it at just over $7 billion, more than half of which is tied up in the media company shares.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors are closely watching Donald Trump&#8217;s Truth Social, but not in the way he hoped. Puzzling metrics on the Truth Social stock ticker have led many to short the stock, aiming to profit substantially<\/p>\n","protected":false},"author":1,"featured_media":2230871,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP24086517223407-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2230870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP24086517223407-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2230870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2230870"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2230870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2230871"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2230870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2230870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2230870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}