re: DWAC - Trump backed media SPAC

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Short til it sits with Trump's previous stock ($.06)

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Full disclosure: I was bullish on this for the 1.5 day mega run as well as prior to the app rolling out. I also supported Trump.

That said, DWAC is a disaster, the wheels are falling off. I think it’s still shortable here (believe it goes to $10) for the following reasons:

1) Two highest ranking tech execs left
2) Chief Legal advisor has left
3) Musk takes activist role in Twitter (hopes to improve censorship)
4) 95 percent drop off on downloads
5) Out of top 250 in App Store
6) No website or android access
7) Missed their third delayed target for full launch
and the biggest one in my opinion
8) Trump hasn't posted or spoken about the app

I had looked forward to Trump having a social media presence again and thought this would be the instrument for that to happen. That doesn’t appear to be the case and I have to be objective and trade what’s happening rather than what I want to happen.

Unless the facts change, this will be my thesis.

Yeah, bought twitter over DWAC. Was really hoping they would deliver on the march date. Elon has stolen their pub. Tough road now.

You’re looking at the Jan 2023 130 puts? I have them at 107.10 bid/110.25 ask.

The deeper an option is in the money, the more it trades like the stock. With the stock around 47.50, you’ve got $82.50 in intrinsic value. The IV is incredibly high at 170% and there’s a fair amount of time value still in it. So that pretty much makes up the balance of the option price.

Did you say that you bought that option? If so, congrats on a winning trade.

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Did you say that you bought that option?

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No, I didn't. The point of the original post was that the puts were way out of whack since it was nearly impossible to borrow the stock to short. The stock is down ~35 points and the put has only gone up in value by 4-7 points. That would have been a terrible buy (although not as bad as buying the stock.)

bump

Sarasota Herald-Tribune: Trump left Sarasota media company weeks before federal subpoenas were issued

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Donald Trump removed himself from the board of his Sarasota-based social media company, records show, just weeks before the company was issued federal subpoenas by both the Securities and Exchange Commission and a grand jury in Manhattan.

Trump, the chairman of Trump Media and Technology Group, was one of six board members removed on June 8, state business records show.

Among the board members removed were Kashyap Patel, Trump's former point man in the White House; Scott Glabe, a former assistant to Trump who was counsel for the media company; and Donald Trump, Jr.

The SEC served Trump Media and Technology Group with a subpoena on June 27, according to a regulatory filing. Trump's media company owns Truth Social, an app similar to Twitter. Trump was banned by Twitter for inflammatory remarks concerning the insurrection.

Four days later, on July 1, a grand jury in the Southern District of New York handed the company another federal subpoena, an action that typically means a potential criminal investigation is in progress.

The investigations appear to be related to a proposed merger between Trump's media company and a blank-check company called Digital World Acquisitions Corp., according to a recent regulatory filing.

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bump