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Trump's DJT Stock Predicted To Struggle In Options Market, Tastytrade CEO Says, 'The Puts Are About Three Times More Expensive Than The Calls'

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Trump's DJT Stock Predicted To Struggle In Options Market, Tastytrade CEO Says, 'The Puts Are About Three Times More Expensive Than The Calls'

Tom Sosnoff, CEO of Tastytrade, predicts a challenging road for Trump Media And Technology Group’s stock (NASDAQ:DJT), with significant downside potential.

What Happened: Sosnoff shared his insights on the future of Trump Media & Technology Group’s stock during CNBC’s “Last Call” on Monday.

“It’s being priced right in the next 80 days with almost $30 of downside,” Sosnoff said, highlighting the cost disparity between puts and calls for DJT stock.

“The puts are about three times more expensive than the calls.”


See Also: Whales On The Move: Transfers Of Over 264 Million Dogecoin On Robinhood Spark Market Buzz

Why It Matters: The options market’s sentiment echoes the skepticism of “Bond King” Bill Gross, who has also taken a bearish stance on DJT stock. Gross has been vocal about his decision to sell DJT options, labeling it a courageous move given the stock’s recent listing and the hype it has generated.

Furthermore, DJT’s valuation has been a hot topic, with comparisons showing that it’s priced 52 times higher than tech giant Nvidia on a particular data point. This has led to discussions about DJT’s meme stock potential and the risks it poses for investors considering short positions.

Read Next: ‘Bond King’ Bill Gross Bets Against Trump’s Newly-Listed Stock: ‘Genius…With The Courage To Sell DJT Options’

Image by mundissima via Shutterstock


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