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Rooting For Trump To Fail Has Made His Stock Shorters Millions
The following information is from an article published by the Associated Press: Rarely has there been such a lucrative opportunity as betting on Donald Trump’s failure.
Despite significant buying activity from Trump supporters and volatile fluctuations that frequently coincide with the candidate’s current polling results, legal proceedings, and public statements on Truth Social, a tenacious group of primarily non-professional Wall Street investors have successfully earned millions of dollars in recent weeks by speculating that the stock price of Trump’s social media company, Truth Social, will continue to decline.
AP – VOR News Image
Rooting For Trump To Fail Has Made His Stock Shorters Millions
Many of the interviewed investors, as reported by The Associated Press, claim that their pessimistic investments using “put” options and other trading instruments are motivated not by their personal opinions of the former president (most of whom do not hold a favorable view), but rather by their confidence in the dismal financial performance of a company that earned less money last year than the average Wendy’s hamburger franchise.
“This company is not profitable. … “It is illogical,” stated Elle Stange, an advertising executive from Boise, Idaho, who approximates that she has earned $1,300 by wagering against Trump Media & Technology shares. “He overestimates his abilities as a businessman.” Many of his ventures fail rapidly.
Jeff Cheung, an IT security professional in Seattle, is certain that this will eventually reach a value of zero.
By Friday morning, exactly one month after Trump Media’s IPO caused its stock to soar to $66.22, it had sharply declined to $38.49. According to an investigation by AP using data from research firms FactSet and S3 Partners, investors who use puts and engage in “short selling” have currently accumulated paper profits of at least $200 million. This figure does not consider the fees associated with puts, which can vary from one deal to another.
However, novice traders, who often only risk a few thousand dollars each, believe that the stock’s volatility makes it premature to claim success. Currently, they are capitalizing on their investments, allowing other bets to remain active, and discreetly observing the most recent fluctuations in stock prices in various locations such as their office cubicle, kitchen table, or even while using the toilet.
“I am uncertain about the future movement of the stock,” states Richard Persaud, a day trader from Schenectady, N.Y., as he checks his iPhone during the sudden increase in stock prices. “The current valuation is excessively inflated.”
Those who spoke with the AP perceived it as an additional political advantage to be aware that their bets resulted in a 50% decline in the value of Trump’s 65% investment. If any of their forecasts prove accurate, they may eventually reduce it to zero, rendering it difficult for him to utilize it to pay his substantial legal expenses or fund his Republican presidential campaign.
They still have a considerable distance to cover. The value of Trump’s interest remains at $4 billion.
Typically, investors anticipating a decline in a stock’s value, particularly a bold group of hedge fund traders known as “short sellers,” will conduct extensive research. They will thoroughly examine financial accounts, acquire specialized knowledge in a particular business, engage in discussions with competitors, and may even seek assistance from “forensic accountants” to uncover concealed vulnerabilities in financial records.
There is no requirement for Trump Media’s case. The corporation’s comprehensive 100-page financial report, which is situated in Sarasota, Florida, contains all the necessary information. The company incurred significant losses of $58 million in the previous year despite generating only $4 million in income from advertising and other sources.
According to the auditor’s assessment, the losses incurred by Trump Media are significant and cast doubt on its capacity to continue operating.
Is this a dream scenario for a short seller? Or is it a terrifying dream?
Manny Marotta, an inexperienced trader, has two computer screens at his house. One screen is used for business, while the other displays the movements of DJT stock, allowing him to assess his gains or losses.
AP – VOR News Image
Rooting For Trump To Fail Has Made His Stock Shorters Millions
The situation appeared unfavorable early this week.
The legal writer from suburban Cleveland had earned a profit of approximately $4,000 on the purchase of “put” options made in the previous weeks. However, the television display that morning depicted investors, likely affluent individuals, purchasing substantial quantities of DJT shares, causing the stock to rise once more.
“The value of my options is decreasing with each passing minute,” remarks Marotta, further stating that DJT is being manipulated. “It’s absurd.”
Anticipating a decrease in stock value is particularly agonizing for “short sellers,” who incur a fee to borrow shares from other individuals. The concept is to promptly sell the items based on intuition and thereafter repurchase the same quantity at a significantly lower price prior to returning them to the lender. Short sellers are able to keep the profit they make from the difference after deducting a small fee.
In the instance of DJT, the charge is far from being modest.
At one point early this month, the annual cost reached 565%, which implies that short sellers would have only two months before any potential profits would be completely offset by fees, even if the company became worthless. According to data from Boston University’s Karl Diether and Wharton’s Itamar Drechsler, who have researched short selling over the past twenty years, just three other equities in recent memory have surpassed this exceptionally high rate.
If there is a significant increase in purchasing by Trump supporters who view it as a means of endorsing their candidate, the potential losses might rapidly escalate.
“It is alarming,” states Drechsler, who compares purchasers of Trump’s stock to steadfast sports enthusiasts. “It embodies all the characteristics that one would typically hope the stock market does not possess.”
According to Shannon Devine, a spokesperson for Trump Media, the company now possesses a substantial amount of $200 million in cash and has no outstanding debts. Devine also criticized the Associated Press (AP) for allegedly favoring those who openly oppose Donald Trump.
Seattle trader Cheung views DJT’s unusual traits as a motive to place a bet against the company rather than avoiding it. Once the lock-up period expires, the ex-president is expected to sell his shares, causing a significant decline in the market and price decline. Furthermore, suppose he chooses not to do so. In that case, other individuals with insider information whose lock-up periods are ending will be apprehensive that he would take action, prompting them to swiftly take advantage of the opportunity to sell at a favorable price before it declines.
AP – VOR News Image
Rooting For Trump To Fail Has Made His Stock Shorters Millions
“The individual who sells out first will make the most profit,” Cheung asserts. “All individuals will engage in selling.”
However, he is taking measures to mitigate any financial losses by hedging some of his “put” wagers with the acquisition of “calls.” The latter are likewise financial instruments derived from an underlying asset, but they have an inverse relationship with the stock price, resulting in profits when the stock price increases. Cheung anticipates that regardless of whether the puts or the calls generate profits, he will earn sufficient returns from one to compensate for the loss incurred by the other.
If this appears excessively intricate, a more straightforward approach exists to generate profits by placing bets against Trump.
Offshore betting firms, which have designated President Joe Biden as the frontrunner for the 2024 election, are accepting 2024 election wagers.
SOURCE – (AP)
(VOR News) – The social media network Bluesky has seen a spike in the number of new users, with over a million people signing up since the conclusion of the U.S. presidential election.
This rise can be linked to the fact that users left the platform because they were unhappy with the direction that X was taking under the direction of Elon Musk, the company’s billionaire owner.
It was announced on Wednesday that the microblogging site had achieved 15 million subscribers. Compared to the roughly nine million members it had in September, this is a considerable increase.
However, Bluesky subscriptions have grown since September.
Jack Dorsey, the founder of Twitter, founded Bluesky in 2019, and it has become known as a safe haven for left-leaning users who are unhappy with the route that X has taken under Musk’s leadership. On Twitter, Bluesky has established a reputation as a safe haven.
Throughout its history, BlueSky has established a solid reputation as a safe and secure location.
Bluesky users have attributed their decision to transfer to Bluesky to an increase in offensive content on X and Musk’s connection to Donald Trump, the incoming US president. Bluesky is a social networking site that facilitates knowledge sharing and discussion. These two factors have been mentioned as justifications for switching to the new system.
On Tuesday, Mark Cuban, a billionaire who had previously backed Kamala Harris for vice president prior to the election, released a statement titled “Hello, Less Hateful World.” On Tuesday, Cuban’s comments was made public. When it came to several problems, Cuban supported Harris.
Due to the “disturbing content” that was accessible on the “toxic media platform,” The Guardian newspaper said in a statement on Wednesday that it will no longer print any information about X. This decision was made in part due to the “toxic media platform.”
Racist remarks and Bluesky conspiracy ideas were in this text.
The Guardian stated on its website, “The U.S. presidential campaign has underscored our long-held belief that X is a detrimental media platform, and its owner, Elon Musk, has leveraged its influence to shape political discourse.”
“The presidential election campaign in the United States merely underscored our long-held beliefs.” “The presidential election campaign in the United States merely underscored our long-held beliefs.”
Since we feel that there are more disadvantages to being on X right now than advantages, we think that promoting our work elsewhere would make better use of the resources we now have.
The business has helped to strengthen Bluesky’s reputation as a haven for liberals who are unhappy with their experiences.
There has been conjecture about Musk’s potential presence to observe election results alongside Trump. X responded by saying that none of its employees would be “sitting with a presidential candidate tonight and giving them direct access to control what you see online.”
This was done in response to the accusations made on the website. This was a reaction to the rumor that Musk would be there when Trump announced the election results. Musk was supposed to be there to witness the declaration.
Since Musk took over the site in October 2022, X has experienced multiple waves of user departures, although it still has a far larger user base than Bluesky. This is true even though Bluesky’s user base is already much larger. There are far less users using Bluesky.
Similarweb, a company that tracks internet traffic, estimates that on the day following the U.S. election, approximately 115,000 users who live in the country deleted their X accounts.
According to Similarweb, this figure was roughly determined. This falls into the category of the biggest single-day decrease in history, according to Musk’s leadership.
SOURCE: AJ
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(VOR News) – The results of a recent study suggest that telehealth therapy may lower the risk of suicide. In the United States, a study was conducted.
The results of a study that was published in the journal JAMA Network Open on November 12 indicate that cognitive behavior therapy can help lower the number of suicide attempts and thoughts.
US Telehealth researchers conducted the study.
This predicament is still true even when therapy is delivered via telehealth for a little period of time. As a result of the information they discovered during the investigation, the researchers finally reached this conclusion.
According to a study conducted by clinical psychologist Justin Baker, a researcher at Ohio State University, this is information that should be promoted.
According to Baker, this is a result of the fact that, at this specific point in history, therapy is increasingly being delivered via the use of virtual methods.
Baker was said to have stated, “The nearly overnight shift from mostly in-person to mostly virtual therapy appointments following the onset of the COVID-19 pandemic was the impetus for this research question.” Ohio State published a press release that contained this message.
In making this claim, Baker was alluding to the fact that the shift occurred very immediately after the outbreak began. Baker was referring to the changes brought about by the pandemic outbreak spreading significantly.
It has long been thought that patients who are deemed to be at high risk are not suitable candidates for virtual healthcare. This is because the use of virtual healthcare is linked to both accountability and the possibility of harm.
We randomly assigned the following telehealth programs to 96 Americans:
They received instruction on how to control and alter the disturbing ideas and bad notions they were experiencing through telehealth cognitive behavioral therapy, with a special emphasis on suicide. They received this instruction while participating in the activity.
A treatment method called present-centered therapy is used to help patients deal with the difficulties they are currently confronting in their life.
The results of the study conducted by the researchers demonstrated that a present-focused approach to treatment is a successful way to reduce depressive symptoms and suicidal thoughts. Research has shown that therapeutic approaches that focus on the present moment are useful.
However, the results of this study show that when it came to reducing the proportion of patients who attempted suicide while getting telehealth services, cognitive behavioral therapy outperformed present-centered therapy.
Furthermore, the results showed that both treatments were effective in lowering the number of suicidal thoughts that patients thought about taking their own lives. The effectiveness of both therapies served as evidence for this.
Craig Bryan, a researcher and the chairman of telehealth Ohio State University’s Suicide Prevention Program, says, “We have good, tested treatments that will lead to significant symptom reduction and improved quality of life for those who are suffering from suicidal thoughts and behaviors.”
In addition, Bryan is currently the program’s leader. Additionally, Bryan is currently in charge of the program. “We have treatments that have been proven to be effective.”
Bryan said that a considerable percentage of therapists are still maintaining some aspect of their telemedicine practice following the epidemic, even though limitations are being loosened.
This leads to the scenario even when boundaries are being loosened. “The results of this study have the potential to expand access to essential treatments that are supported by evidence for people living in rural and difficult-to-reach areas.”
You should call the telehealth Suicide and Crisis Lifeline at 988 if you or a loved one is experiencing an emotional or suicide crisis if you are experiencing emotional distress. They are available to listen to your issues as well as offer support.
SOURCE: USN
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The Main US Inflation Tracker Increased For The First Time Since March.
(VOR News) – The challenging road to lower levels is demonstrated by the fact that one of the most important measures of inflation in the United States has increased for the first time since March.
The consumer price index (CPI), a metric that gauges price inflation across a variety of goods, at an annual rate of 2.6% as October reached its peak. The CPI has never been higher than it was at this time.
According to reports, the rate was 2.4% last month, the lowest in over three years. This rate is higher than the one that was noted the month before.
Eliminating food and energy, “core” inflation stayed at 3.3%.
This occurred upon completion of the computation. Following this stage, the index underwent a thorough analysis. A reading was considered accurate if it agreed with the estimates provided by economists.
Even though inflation has somewhat decreased since reaching its greatest level in four decades in the summer of 2022, many Americans still face financial hardship as a result of years of rising prices. This can be attributed to the fact that inflation peaked in the summer of 2022.
According to exit poll results, a significant number of Republican voters expressed dissatisfaction with their own financial circumstances as well as the state of the US economy.
Their voiced displeasure was a reflection of their dissatisfaction. A significant factor that contributed to the election was the ire generated by the rising cost of living. This rage was among the most important factors.
Concerns have been expressed regarding the real effects that these reforms would have on the inflation rate. Donald Trump proposed tax cuts and tariffs as workable answers throughout his campaign, but there have been questions raised over the real effects of these measures.
The next president has promised to levy tariffs on all U.S. imports that are at least 10 percent higher than the current rate, according to the results of a research by Yale’s Budget Lab.
The implementation of this strategy, which many industry experts believe would almost surely result in an increase in inflation of up to 5.1%, has already been made public.
It was the first time in four years that the Federal Reserve started lowering interest rates in September, which marked the first time in four years they had done so.
This was the first time they had ever implemented inflation.
The Federal Reserve has reached a significant turning point in its attempts to control inflation at this particular moment. Additional interest rate cuts were implemented Monday, lowering them to their lowest point since February 2023. Since February 2023, they have not been this low.
The Federal Reserve’s chairman, Jerome Powell, said the Fed “has gained confidence that we’re on a sustainable path down to 2%,” the target it has set for its inflation rate.
He hosted a news conference where he made this declaration. Considering the previously mentioned, he added that “the task is incomplete.”
As part of its “dual mandate,” the Fed is working to keep inflation from rising while also keeping the unemployment rate from rising. This is being done from the Federal Reserve’s point of view.
Over the past few months, the labor market has been significantly slowing down; in October, the United States created just 12,000 new jobs.
This suggests that there is a downturn in the labor market. In October 2023, the unemployment rate was 4.1%, which was a low figure that was similar to levels before the sickness started. Since the illness had not yet spread, this was the situation. This occurred following a reduction in the rate, which came to 3.4% in February 2023.
In response to a query concerning the impact of the election on the Federal Reserve’s interest rate decisions, Powell said that officials “do not know the timing or substance of any policy changes.”
Powell was questioned on the significance of the election. As a consequence, we are unable to determine the possible economic impact of this. The current circumstances are to blame for this.
SOURCE: TG
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