Chart Talks: DJT rally, call options up 130%, but better PUT now
*Disclaimer: I DO NOT own any DJT stocks or options, and this post reflects my personal views. Always DYOR (Do your own research).
DJT is now 33USD at pre-market trading and The stock has more than doubled since hitting a low of $11.75 on Sep 24. A call option expired at this Friday surged nearly 130% on last trading day. Despite this bullish momentum, there are significant concerns that suggests the risks outweigh the potential rewards.
Technical
Look at the short sale data of DJT, you'll notice an increase in short interest that surpasses the levels seen in March when DJT was trading at its peak of $70. This indicates that more investors are currently betting on a decline in the stock price, with sentiment now even more bearish than it was in March.
Look at the daily chart, every time DJT breaks above the upper limit of the Bollinger Bands, it tends to fall back into the channel within 4 trading days. Recently, the price has broken above the upper limit again for 4 days, so it is highly likely to return to the channel.
Fundemental
DJT reported a 30% plunge in revenue in the latest quarter, alongside a $16.4 million net loss. Despite having $344 million in cash, the absence of debt doesn't shield the company from its operational inefficiencies. Entering a competitive streaming market with limited capital is daunting. Major players like Netflix and Disney invest billions annually in content, a feat DJT cannot match with its current cash reserves. Recent executive departures and ongoing litigation are red flags. The resignation of key personnel and shareholder sell-offs point to potential governance issues, which can erode investor confidence. Truth Social's user base is modest, with only 2 million active users. The platform's political association further narrows its appeal to advertisers, restricting potential revenue growth.
Given these factors, I recommend considering buy the far-dated put options on DJT.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
a AU-based investor focus on US & AU markets. I am CFA charterholder and hold MSc degree in Food Science from UNSW🦘
195Followers
156Following
263Visitors
Follow
TSLA2800 : Which one is the Bollinger Band? When might it return to how much and when will the put option for the future be?
OfficeOne : Will it fall today? $Trump Media & Technology (DJT.US)$
slam-dunk-1 : Learn from you.
Euler007 : too much Trump hype, enter with caution!
OBIfromMEM : DJT Stock: The Biggest Opportunity of 2024? Why Shareholders Can’t Afford to Miss This Moment | by Stock Market Loop | Oct, 2024 | Medium
BeeDeeVee712 Euler007 : ^^THIS^^
Terri Kay : The greatest president of our times is about to be reelected and you think this billionaires stock is gonna go down? C’mon man!! Think bigger.
禅意 : Thank you for sharing.
Wowser : DJT most likely pumped by Musk. It was tanking. If does not win Presidency it will crash unless he uses it for patron grifts and Send me your money. They are prosecuting me and I DID NOTHING WRONG.
akisat : It will be a learning experience.
View more comments...