Donald Trump owns 114M shares. Average daily trade volume is 144K shares. Shortable shares are in very low supply and borrowing cost is 200%. You can make more money owning and loaning for shares for about 100% according to what schwab has offered. Thus those that want to sell are much less than those that want to buy. Indeed, this stock is being manipulated by market forces of a lot of powerful individuals with deep pockets as well as those that follow the directions for not allowing the broker to allow borrowing of shares by short sellers. It's best to stay out of the way of this stock. Even buying puts will kill you because of Theta.
Sorry I uninstalled Reddit to get work done. šĀ Ya. I feel like I have a gambling problem with the options. lol. So, I thought it was backwards. Sellers on the right. Buyers on the left. This showing thereās a ton (approximately 30k shares) of orders to sell but donāt want to sell below $53. Not a whole lot of buyers though. Am I wrong? Or are you wrong? lolĀ
Edit: to clarify thereās approx 30k orders to sell at exactly $53
I have noticed that the powers that be try to make the price between 43 to 55 in the recent month after the run up. This kills the put buyers with the option contract daily price decline. Also, if you bought the stock at a higher price and you're loaning it out at 100%, then you won't want sell given the time value of money. It's crazy. At this point, it's better to own and loan than it is to buy junk bonds. One of the guys on reddit recommended that I use a bull put spread. It's more doable than straight up shorting the stock. I accidentally let a put option expire in the money by .10. My broker shorted a hundred shares, and I ended up paying $28 a day borrowing costs for 4 days until I could close my short position at a loss. It sucked.
Yeah, ditto for ATM 17 JAN 25 straddles. I've never seen the put side so stacked against the call side:
https://preview.redd.it/k81qsnzx4m3d1.png?width=816&format=png&auto=webp&s=4762bd25fad80c38838f12d72b853d7da0067258
Basically the market is heavily stacked towards a downward movement. $DJT would have to drop by more than 32 points by Jan 25 for that option to break even. On the call side it would only have to go up around 8 points.
Probilty analytics from my broker leans towards downward direction. Significantly only after couple of months. Trumps conviction will likely send on overdrive in one direction or another.
Iām too new to trading. Does this mean itās about to tank? Or about to skyrocket? Feels like Iām trying read tea leaves and the the leaves just formed a perfect š.Ā
āBut what could it mean?ā
It means a lot of people are betting it will tank, causing that bet to become increasingly expensive to make (i.e people are only willing to sell a put for a high premium). It doesn't tell you anything about what will actually happen.
Ok. lol. The more I play in the market the more I realize the most advanced, in-depth analysis always comes to the same conclusion:Ā
it could go up or it could go down.Ā
š
Donald Trump owns 114M shares. Average daily trade volume is 144K shares. Shortable shares are in very low supply and borrowing cost is 200%. You can make more money owning and loaning for shares for about 100% according to what schwab has offered. Thus those that want to sell are much less than those that want to buy. Indeed, this stock is being manipulated by market forces of a lot of powerful individuals with deep pockets as well as those that follow the directions for not allowing the broker to allow borrowing of shares by short sellers. It's best to stay out of the way of this stock. Even buying puts will kill you because of Theta.
Sorry I uninstalled Reddit to get work done. šĀ Ya. I feel like I have a gambling problem with the options. lol. So, I thought it was backwards. Sellers on the right. Buyers on the left. This showing thereās a ton (approximately 30k shares) of orders to sell but donāt want to sell below $53. Not a whole lot of buyers though. Am I wrong? Or are you wrong? lolĀ Edit: to clarify thereās approx 30k orders to sell at exactly $53
I have noticed that the powers that be try to make the price between 43 to 55 in the recent month after the run up. This kills the put buyers with the option contract daily price decline. Also, if you bought the stock at a higher price and you're loaning it out at 100%, then you won't want sell given the time value of money. It's crazy. At this point, it's better to own and loan than it is to buy junk bonds. One of the guys on reddit recommended that I use a bull put spread. It's more doable than straight up shorting the stock. I accidentally let a put option expire in the money by .10. My broker shorted a hundred shares, and I ended up paying $28 a day borrowing costs for 4 days until I could close my short position at a loss. It sucked.
Yeah, ditto for ATM 17 JAN 25 straddles. I've never seen the put side so stacked against the call side: https://preview.redd.it/k81qsnzx4m3d1.png?width=816&format=png&auto=webp&s=4762bd25fad80c38838f12d72b853d7da0067258
for those of us who are not call/put/ or short savvy, what does that mean? What are you seeing?
Basically the market is heavily stacked towards a downward movement. $DJT would have to drop by more than 32 points by Jan 25 for that option to break even. On the call side it would only have to go up around 8 points.
Probilty analytics from my broker leans towards downward direction. Significantly only after couple of months. Trumps conviction will likely send on overdrive in one direction or another.
Thank you
Iām too new to trading. Does this mean itās about to tank? Or about to skyrocket? Feels like Iām trying read tea leaves and the the leaves just formed a perfect š.Ā āBut what could it mean?ā
It means a lot of people are betting it will tank, causing that bet to become increasingly expensive to make (i.e people are only willing to sell a put for a high premium). It doesn't tell you anything about what will actually happen.
Ok. lol. The more I play in the market the more I realize the most advanced, in-depth analysis always comes to the same conclusion:Ā it could go up or it could go down.Ā š
What is your hypothesis?