I refreshed and the option chains appeared.
by EricCartman (2024-03-26 11:07:23)
Edited on 2024-03-26 22:06:38

In reply to: Pulled from Yahoo Finance  posted by gregmorrissey

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The IV is wild. It is around 400% for this week, dropping to 124% for Jan-26.

The LT vol is reasonable, the ST vol is insane. That is what happens when a stock explodes.

My earlier point is that someone can loan to Trump while also hedging their position. It is a bit different than loaning against a private asset, which does not allow for the ability to hedge easily (maybe someone would enter into a private put contract. I've never heard of it, but that doesn't mean that it doesn't exist or isn't possible).

How could they hedge at those prices?
by gregmorrissey  (2024-03-26 11:32:48)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

Admittedly, as you pointed out, the volatility is wild. Assuming it settles down, maybe it becomes more feasible. I also suppose anyone lending would lend against his entire DJT position as collateral which makes hedging more reasonable.

Agreed on your point about pubic vs. private though I'm sure someone offers private asset option contracts --- not sure they'd be willing to offer them in a Trump-related transaction though.


Related, but off topic, I think it's ironic that the key to Trump's bond issue for a case where he claimed outlandish property values could end up being a stock that is actually trading at an outlandish value.

I never said the hedge was cheap. *
by EricCartman  (2024-03-26 15:51:42)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply