The Ultimate Trump Trade?
If you want to make a short term bet on the Ultimate Trump Trade, look no further than shares of Trump Media & Technology Group (DJT) heading into January 20th, 2025 – Inauguration Day.
Of course, this is speculative, but I think that shares of DJT could rise into January 20th from current levels.
It’s an ego thing and what better way to show a positive reaction to all things Trump than to see a nice move in the shares?
How can you play this trade?
Well, there are a few ways depending on your risk tolerance.
- You could buy shares of #DJT at current levels in the mid $30s and look for a pop into the $40s or higher
- You could enter a spread trade using the $35/$45 spread with expiration after Jan 20, 2025
- You could sell puts to try to own the shares at lower levels
- You could buy straight calls with a late January expiration – maybe check out the $40 calls – the premiums are high, which is why I prefer the spread route
Whichever way to choose to go, you should know a few things heading into the trade.
- The shares are extremely pricey -trading at monstrous levels compared to the fundamentals. Like probably the most overvalued company in the market today.
- Expect immense volatility so if you choose the shares route, make sure you have a stop-loss in place
- The shares could sell off post Inauguration as a “sell on the news play”.
This means that people buy into the “rumor” and sell into the news. It’s just how Wall Street works!
Of course, you could choose the “other Trump trade” and buy into the crypto boom through a variety of coins like Bitcoin, Ethereum or even a huge number of ETFs that hold bitcoin like #IBIT or BITO. Or you could buy options on the miners like #MARA.
YOUR ACTION PLAN
Regardless of the route you choose, you can bet that there will be a lot of positioning prior to Inauguration Day.
And, you can also bet we’ll be looking at all the options above in The War Room and we may enter into a juicy trade if the opportunity presents itself. Last week we closed 6 of 7 trades for winners, including a 36% gain on PLTER.
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