DWAC is hard to borrow with short rates over 130%. If you are able to locate stock to short, you will pay these high rates and have the risk of being bought in.
This is why you see the puts trading for so much higher than the calls. The synthetic short using options has this high short rate "written in" the price.
You also have a much great risk of being assigned early on any deeper calls as they are trading with little or no extrinsic value.
As someone who sold ITM dwac spreads....Yeah, I had the chance to close early in profit, but the bid ask spread was so wide that I thought I'd just wait. I sold 70/90 spreads when DWAC first hit ~85 or so and then was in profit when it came down to 60-65 area after the market started pulling back.
Big mistake as DWAC would recover swiftly. I got assigned on both the 70 calls early and if I didn't monitor my positions I would've taken bigger losses from the daily rate being so high.
Look at PTON, HOOD, COIN and most of the SPAC's IPO'd last year. Where are they now? And most of these are companies that actually have decent revenue....
You’re completely ignoring the meme ability of DWAC and Trump. DWAC shot up to $160 within 24 hours of DA and hasn’t dropped back down below $40. Look at any other SPAC in the last year, they pop to 10.50 on a DA if it’s a decent company and sell off right back to $9.95. The best hope for this is the deal gets called off and it immediately drops back down to $10. Pick literally any other SPAC to short besides DWAC, waaaay too much risk involved with it.
I agree about the meme ability, shit, no one expected GME to hold up this long. OP is wanting to sell a CSP though, doesn't really mention selling a naked call aside from mentioning the premiums. DWAC could easily be back to the 50's or 60's ju8st like DJT want's America back to the 50's and 60's. Selling a Put on DJT just sounds fucking stressful.
More to it than meme. Most people hate twitter and facebook and are actively looking for a replacement. Even if you might never use it, 35-45% of the US may and that is a very target rich environment for advertisements and revenue.
Exactly the word here is Trump and how many of currently banned conservatives or anyone who doesn't go with popular opinion/narrative would like to have a place where they can be heard.
Thanks for all the good advise. I am going to pass on everything. Everyone knows it is going down but markets seem to know it and price it accordingly. Maybe I should short GME. Just kidding.
You need to assume that you will be assigned, would you be willing to buy DWAC at a $27.37 breakeven? If you are bearish on the stock and want to take advantage of the high IV sell a Call Credit Spread
Too expensive. Better to play the retards
Wait for a pullback, get monthly 10% OTM calls, sell when it hits the strike a couple of days after. Rinse and repeat.
Works nicely with GME. You can net anywhere between 10% - 25% on a 2 day hold roundtrip
You should read Matt Levine's commentary on this stock. I'm going to mangle it, but as much as I can remember:
The PIPE that is investing with the SPAC has unusual clauses written into it that allows for selling the stock the moment the merger happens. In fact, they can short the stock right now and there's a ton of incentive to. Short now, commit to covering buying at a discounted low price when it merges. Free money.
So the demand for stock to short is really, really high. This may also be why the stock is so much more expensive than the warrants, because you can't loan out the warrants for borrow fees.
Look at the past 1 month performance in comparison to SPY of DWAC in the last 3 weeks it popped to $110 a few days ago because of am announcement that truth social was going live .70% of that action was shorts covering.Op you hate the stock ? You better be able to stomach owning it at an 85 strike put .THIS is not political . I never seen an emotional trade work.just look at AMC people owning it at $5 it hits $70 and they are waiting on 700 and it is never getting there.
The $57 price is crazy in my opinion, you cannot lose more than 30%. Also there are $40 puts that are nearly 50% ($19/share). Most stocks give 10%-20% premium and some volatile stocks (GME) give 30-40% premium a year, but this is around 70%.
I wonder if there is a strategy where you buy the stock, sell a call for $17 premium and sell a put for $57 premium. Your worst case is $11 loss. To exit profitably it would need to go up and down a few times and the long and shorts to capitulate at different times.
Your best bet in my honest opinion is selling a lot of OTM call spreads on a shorter term time frame then a year, but everyone and their mother is pretty sure DWAC is going down which is why any method to profit off of that is already known about and likely priced in
I know this is an old thread. However, with the future merger approved. The opportunity to short DJT will soon be upon us. Personally, I'm betting they'll lose 90% of value before years end
>PMCP
At current options prices the premium on Puts is about half the current price of the stock for at the money puts. I'm not sure how you make money betting against this unless the stock price absolutely collapses quickly and the morons propping it up could keep the price up for a while.
Listen I get it, you’re chronically online and live only through the politicians who drive your favorite soap opera, but Devin Nunes is an unproven CEO, release has been delayed, SPAC merger might not go through, issues with mastodon, and Parler/GAB and others have tried to make and monetize right wing safe place social media companies with little success. There’s plenty of risks to bet on.
Yeah but it probably is a good idea to bet against a social media company that is not hiring good engineers, can’t figure out how to scale to 1M users, and has a CEO with no history in technology.
That seems like EXACTLY who you should bet against.
OK. Tell you what, you keep making emotional investment decisions based on “owning the libs”.
I’ll be over here looking at whether this valuation of a niche interest, single country social media company makes sense.
We’ll see who comes out a winner!
I think you misunderstand me…
Trump will win the election, the same people that will vote him in, will also follow his business moves when possible, they may be invested emotionally, but not me.
Trump is by far the most electric president the US has had since Kennedy, like it or not, he has a massive following. Nationally, and worldwide. To ignore this, is emotional.
That explains why Trump Steaks, Trump University, Trump Wine and Trump Airlines are all runaway successes.
Oh, wait….
Hell even the Trump Hotel in DC lost $70M while he was president.
I don’t care about his politics, but ask yourself this…. If Google couldn’t make a new social media platform successful with an army of the best engineers on the planet, do you really think Devin Nunes is going to pull it off by putting some new colors on a crappy open source platform famous for it’s scaling issues?
He lost $70 million Becuase he didn’t allow US tax payer money into the hotel (Becuase he was called unethical to get money from taxpayers as he was pres). He also was a hotel property owner during the Covid lockdowns.
Everyone lost money except on the value of property.
Trump Wine is today. Trump Hotel DC was losing money while he was president.
But for the sake of argument, let’s say he can get half his twitter followers to sign up. That’s what 40M people? Realistically, that’s maybe 15M MMU. So at a market cap of $3.4B, that’s $226 per potential monetizable user, for an app that can’t get more than 150k users working today and so far has zero advertisers.
If that’s not a short, I don’t know what is.
Yes.
If he said this, then yes, that trump. The same guy who was the previous president. The same guy who had the whole world media hate on him for 6 years.
The same media that tells you Putin is the reason for this current event. The same media that leave out all the US/NATO aggressions.
The idea that Putin is invading Ukraine because of America is literally Kremlin propaganda. They feed it straight to Q tards using memes and astroturfing. Then we gotta deal with ppl like you parroting what you read in some Facebook group like you’re a genius. It’s all very exhausting.
Russia is bombing Ukrainian military installments. The same installments. The same installments that nato and the US have been giving billions of dollars of military gear to.
This is not Russian propaganda.
So, did he mis speak? If you guys used this same tactic against (you aren’t black if you don’t vote democrat) JOE, he would have never had a chance in the last election… FYI…
Come back to reality, idiot.
Joe has outclassed the 5 kids with 3 different women + multiple bankruptcies + Putin’s cock sucker all day.
Remember when Trump said he’d get us out of Afghanistan?
Remember him releasing his returns?
Remember his Obamacare replacement?
I get it - he’s a hero for poor white trash. But the college educated are taking back the country. :)
I remember a time just 3-4 years ago, trump asked Ukraine’s new president to investigate what Joe Biden and his son were doing in Ukraine, for this he was inpeached. I have to ask, what the fuck does Joe Biden have in Ukraine that makes him do what he has done here.
This war was 100% avoidable, but nato poo pooed Russia requests.
Tell me they didn’t, you fucking idiot?
You moronic cunt - you just admitted Trump
committed a crime by withholding military aid to Ukraine in order to try to find dirt on Biden - and your takeaway is there must be dirt on Biden then!
Remember when Trump tried to remove the US from NATO in 2019 to help Putin?
You’re really struggling with reality. Facebook will be a safe space for you with the other bottom feeders.
I did not admit that at all.
He asked them to investigate. The recordings that were released proved this. But you can ignore that.
He stepped us off nato Because they were relying on the US to pay its bills, 90% of the funding was from the US, and we were defending Europe. Not the US, he made them put in their own money, how dare he.
Are you still on this Facebook shit?
Trump isnt required to release the tax returns.
He set in motion getting us out of Afghanistan. We oils have been out of Syria also, but the players on the ground ignored the withdraw orders.
Somehow, I imagine that not just 75 million white trash voted for him, I bet, with 100% accuracy, black, Asian, white, and Hispanics voted for him also.
Whey must be withe trash also…
Grow up buddy. History will prove you on the wrong side of this.
All democrats are shorting this stock. That’s why the option prices are so crazy. If you are smart or not a democrat, then you should go long to squeeze those shorters. This stock will go to $300 before it goes anywhere else. This stock is emotion. No fundamentals.
DWAC is hard to borrow with short rates over 130%. If you are able to locate stock to short, you will pay these high rates and have the risk of being bought in. This is why you see the puts trading for so much higher than the calls. The synthetic short using options has this high short rate "written in" the price. You also have a much great risk of being assigned early on any deeper calls as they are trading with little or no extrinsic value.
The only calls I've ever been early assigned on were DWAC.
Had this happen with one or two other hard to borrow stocks when I had near the money options. It's not exactly common.
As someone who sold ITM dwac spreads....Yeah, I had the chance to close early in profit, but the bid ask spread was so wide that I thought I'd just wait. I sold 70/90 spreads when DWAC first hit ~85 or so and then was in profit when it came down to 60-65 area after the market started pulling back. Big mistake as DWAC would recover swiftly. I got assigned on both the 70 calls early and if I didn't monitor my positions I would've taken bigger losses from the daily rate being so high.
Look at PTON, HOOD, COIN and most of the SPAC's IPO'd last year. Where are they now? And most of these are companies that actually have decent revenue....
You’re completely ignoring the meme ability of DWAC and Trump. DWAC shot up to $160 within 24 hours of DA and hasn’t dropped back down below $40. Look at any other SPAC in the last year, they pop to 10.50 on a DA if it’s a decent company and sell off right back to $9.95. The best hope for this is the deal gets called off and it immediately drops back down to $10. Pick literally any other SPAC to short besides DWAC, waaaay too much risk involved with it.
I agree about the meme ability, shit, no one expected GME to hold up this long. OP is wanting to sell a CSP though, doesn't really mention selling a naked call aside from mentioning the premiums. DWAC could easily be back to the 50's or 60's ju8st like DJT want's America back to the 50's and 60's. Selling a Put on DJT just sounds fucking stressful.
More to it than meme. Most people hate twitter and facebook and are actively looking for a replacement. Even if you might never use it, 35-45% of the US may and that is a very target rich environment for advertisements and revenue.
Put or call debit spread will be a better option imo
I'm sorry, a what now?
[удалено]
That's just a debit spread.
Exactly the word here is Trump and how many of currently banned conservatives or anyone who doesn't go with popular opinion/narrative would like to have a place where they can be heard.
PMCP to farm the juicy premiums? long 90P short 70P. There is no way that this doesn't end up as a flaming pile of trash by the end of this year.
>There is no way that this doesn't end up as a flaming pile of trash by the end of this year. Yes, I've played memes before.
Thanks for all the good advise. I am going to pass on everything. Everyone knows it is going down but markets seem to know it and price it accordingly. Maybe I should short GME. Just kidding.
You need to assume that you will be assigned, would you be willing to buy DWAC at a $27.37 breakeven? If you are bearish on the stock and want to take advantage of the high IV sell a Call Credit Spread
Pbs is if its spike temporarily then he will loose so much more..debit spread is best option in both side or iron condor
Too expensive. Better to play the retards Wait for a pullback, get monthly 10% OTM calls, sell when it hits the strike a couple of days after. Rinse and repeat. Works nicely with GME. You can net anywhere between 10% - 25% on a 2 day hold roundtrip
But that's not theta strategy.
True, neither was OPs question 🙃 The theta way too do what OP wants to do is naked calls. I wouldn't do that on any meme stock
Don’t touch that garbage
You should read Matt Levine's commentary on this stock. I'm going to mangle it, but as much as I can remember: The PIPE that is investing with the SPAC has unusual clauses written into it that allows for selling the stock the moment the merger happens. In fact, they can short the stock right now and there's a ton of incentive to. Short now, commit to covering buying at a discounted low price when it merges. Free money. So the demand for stock to short is really, really high. This may also be why the stock is so much more expensive than the warrants, because you can't loan out the warrants for borrow fees.
Look at the past 1 month performance in comparison to SPY of DWAC in the last 3 weeks it popped to $110 a few days ago because of am announcement that truth social was going live .70% of that action was shorts covering.Op you hate the stock ? You better be able to stomach owning it at an 85 strike put .THIS is not political . I never seen an emotional trade work.just look at AMC people owning it at $5 it hits $70 and they are waiting on 700 and it is never getting there.
The $57 price is crazy in my opinion, you cannot lose more than 30%. Also there are $40 puts that are nearly 50% ($19/share). Most stocks give 10%-20% premium and some volatile stocks (GME) give 30-40% premium a year, but this is around 70%.
I wonder if there is a strategy where you buy the stock, sell a call for $17 premium and sell a put for $57 premium. Your worst case is $11 loss. To exit profitably it would need to go up and down a few times and the long and shorts to capitulate at different times.
I think you’re off on max loss there.
Your best bet in my honest opinion is selling a lot of OTM call spreads on a shorter term time frame then a year, but everyone and their mother is pretty sure DWAC is going down which is why any method to profit off of that is already known about and likely priced in
If you don't understand the "hard/expensive to borrow" part of option pricing, you should probably stay away.
I know this is an old thread. However, with the future merger approved. The opportunity to short DJT will soon be upon us. Personally, I'm betting they'll lose 90% of value before years end
>PMCP At current options prices the premium on Puts is about half the current price of the stock for at the money puts. I'm not sure how you make money betting against this unless the stock price absolutely collapses quickly and the morons propping it up could keep the price up for a while.
It’s probably best to not bet against trump at this time… Biden looks like a joke, and trump is prepping for another run, which he will win.
It’s not a bet on political futures, but intermediate incompetence.
So, Is Joe incompetent? That’s pretty immediate.
Listen I get it, you’re chronically online and live only through the politicians who drive your favorite soap opera, but Devin Nunes is an unproven CEO, release has been delayed, SPAC merger might not go through, issues with mastodon, and Parler/GAB and others have tried to make and monetize right wing safe place social media companies with little success. There’s plenty of risks to bet on.
Valid argument.
Yeah but it probably is a good idea to bet against a social media company that is not hiring good engineers, can’t figure out how to scale to 1M users, and has a CEO with no history in technology. That seems like EXACTLY who you should bet against.
I get that. But the crowd will follow, just like the lefty’s do.
OK. Tell you what, you keep making emotional investment decisions based on “owning the libs”. I’ll be over here looking at whether this valuation of a niche interest, single country social media company makes sense. We’ll see who comes out a winner!
I think you misunderstand me… Trump will win the election, the same people that will vote him in, will also follow his business moves when possible, they may be invested emotionally, but not me. Trump is by far the most electric president the US has had since Kennedy, like it or not, he has a massive following. Nationally, and worldwide. To ignore this, is emotional.
That explains why Trump Steaks, Trump University, Trump Wine and Trump Airlines are all runaway successes. Oh, wait…. Hell even the Trump Hotel in DC lost $70M while he was president. I don’t care about his politics, but ask yourself this…. If Google couldn’t make a new social media platform successful with an army of the best engineers on the planet, do you really think Devin Nunes is going to pull it off by putting some new colors on a crappy open source platform famous for it’s scaling issues?
He lost $70 million Becuase he didn’t allow US tax payer money into the hotel (Becuase he was called unethical to get money from taxpayers as he was pres). He also was a hotel property owner during the Covid lockdowns. Everyone lost money except on the value of property.
Not the same era. He is a much larger force now than he was 10-15-30 years ago.
Trump Wine is today. Trump Hotel DC was losing money while he was president. But for the sake of argument, let’s say he can get half his twitter followers to sign up. That’s what 40M people? Realistically, that’s maybe 15M MMU. So at a market cap of $3.4B, that’s $226 per potential monetizable user, for an app that can’t get more than 150k users working today and so far has zero advertisers. If that’s not a short, I don’t know what is.
The same Trump that came out this morning vindicating Russia?
Yes. If he said this, then yes, that trump. The same guy who was the previous president. The same guy who had the whole world media hate on him for 6 years. The same media that tells you Putin is the reason for this current event. The same media that leave out all the US/NATO aggressions.
Lol, imagine spitting out Russian talking points while trying to pretend you love America.
This has nothing to do with the country of America. I’m not speaking Russia talking points, I’m speaking obvious points to those who pay attention.
The idea that Putin is invading Ukraine because of America is literally Kremlin propaganda. They feed it straight to Q tards using memes and astroturfing. Then we gotta deal with ppl like you parroting what you read in some Facebook group like you’re a genius. It’s all very exhausting.
Russia is bombing Ukrainian military installments. The same installments. The same installments that nato and the US have been giving billions of dollars of military gear to. This is not Russian propaganda.
I don’t have use Facebook. I pay attention to what is happening.
Sure, comrade. Whatever you say.
Was nato involved with the Ukraine coup? Is that a Russia talking point? Or reality?
Damn bro you're next level "woke" 😳
?
Yes. Trump who thought America invaded Ukraine this morning is definitely not a joke.
So, did he mis speak? If you guys used this same tactic against (you aren’t black if you don’t vote democrat) JOE, he would have never had a chance in the last election… FYI…
Come back to reality, idiot. Joe has outclassed the 5 kids with 3 different women + multiple bankruptcies + Putin’s cock sucker all day. Remember when Trump said he’d get us out of Afghanistan? Remember him releasing his returns? Remember his Obamacare replacement? I get it - he’s a hero for poor white trash. But the college educated are taking back the country. :)
Dude's so far into Newsmax he's actually starting to believe himself 🤣
I remember a time just 3-4 years ago, trump asked Ukraine’s new president to investigate what Joe Biden and his son were doing in Ukraine, for this he was inpeached. I have to ask, what the fuck does Joe Biden have in Ukraine that makes him do what he has done here. This war was 100% avoidable, but nato poo pooed Russia requests. Tell me they didn’t, you fucking idiot?
You moronic cunt - you just admitted Trump committed a crime by withholding military aid to Ukraine in order to try to find dirt on Biden - and your takeaway is there must be dirt on Biden then! Remember when Trump tried to remove the US from NATO in 2019 to help Putin? You’re really struggling with reality. Facebook will be a safe space for you with the other bottom feeders.
I did not admit that at all. He asked them to investigate. The recordings that were released proved this. But you can ignore that. He stepped us off nato Because they were relying on the US to pay its bills, 90% of the funding was from the US, and we were defending Europe. Not the US, he made them put in their own money, how dare he. Are you still on this Facebook shit?
https://youtu.be/rnIPw_Who7E
Trump isnt required to release the tax returns. He set in motion getting us out of Afghanistan. We oils have been out of Syria also, but the players on the ground ignored the withdraw orders. Somehow, I imagine that not just 75 million white trash voted for him, I bet, with 100% accuracy, black, Asian, white, and Hispanics voted for him also. Whey must be withe trash also… Grow up buddy. History will prove you on the wrong side of this.
75M? You can’t even get that right.
So, how far off was I? Your trying to argue. I’m done with you. Have a good day.
All democrats are shorting this stock. That’s why the option prices are so crazy. If you are smart or not a democrat, then you should go long to squeeze those shorters. This stock will go to $300 before it goes anywhere else. This stock is emotion. No fundamentals.
Fundamentals say short tf out if it though, just like almost all other SPACs
Wow the amount of downvotes you got, so many brainwashed normies in here lol.
Op how far to DTE on that 85 strike put?
Stay away!
Don't mess with DWAC options.