'Bond King' Bill Gross Bets Against Trump's Newly-Listed Stock: 'Genius…With The Courage To Sell DJT Options'
Portfolio Pulse from Rounak Jain
'Bond King' Bill Gross is actively trading options on Trump Media & Technology (NASDAQ:DJT), betting on the stock's high volatility. He's selling puts and calls with the expectation that DJT's stock will stay between $45 and $95. The stock, which went public through a merger with Digital World Acquisition Corp., has seen a significant increase, jumping 275% year-to-date. Trump Media's valuation has reached around $9 billion, despite modest revenues, making it a speculative favorite but also the most expensive US company to bet against.
March 30, 2024 | 2:07 am
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NEUTRAL IMPACT
Bill Gross's options trading on DJT highlights its high volatility and speculative nature. The stock's significant year-to-date increase and its high valuation despite modest revenues make it a focal point for investors.
Bill Gross's trading strategy and the public interest in DJT due to its association with Donald Trump and its speculative nature could maintain its current volatility. However, the high cost of betting against the stock and its speculative valuation suggest a neutral short-term impact, as these factors could balance each other out.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100