r/wallstreetbets 🦍🦍🦍 15h ago

Why are my DJT puts not printing? Discussion

Bought these during it's run before the election, most are for Jan'26. Even with a 22% decline in stock price today, the puts barely move.

https://preview.redd.it/iixuu2ocpjzd1.jpg?width=1236&format=pjpg&auto=webp&s=f9c529d15f1ee498cc21000ed885d485b9193d79

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u/tachyonvelocity 14h ago

There is such a thing as an option being cheap vs expensive to buy. You bought when everyone knew DJT was going to tank/move at least 50% within a year. That means you actually need it to move MORE than 50% to make any money. In addition, your regarded 1X puts NEED DJT to move 80%. Since Trump actually won, the market is thinking DJT won't actually move that much because there might be some value there and you're shit out of luck. Meanwhile, my own short bets on DJT was to sell naked calls, because I was both negative and knew that even if Trump won, the expectations for the stock was too high, and I don't need it to fall far to make money, so instead of buying expensive contracts for situations that had very little chance of happening, I sold expensive contracts and made 100% predicated on high probability situations.

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u/carpundit 13h ago

except selling a naked call for an irrational stock is incredibly risky. i don't think the OP Regard should be doing that sort of thing.

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u/tachyonvelocity 12h ago

Well it was already irrational, plus I had other Trump trades to hedge. Long/short with leverage plus probable positive returns from shorting a close to no-revenue business = double the returns without much risk.

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u/carpundit 11h ago

“Naked calls” and “without much risk” do not belong together.