Trump Media & Technology Group (DJT.O), opens new tab,'s dramatic debut attracted market participants as its shares went on a rollercoaster trip, topping $9 billion before plummeting.
The stock's extraordinary swings have attracted traders and created big changes in former President Donald Trump's net worth, a majority shareholder.
Trump Media shares closed at $32.41, 54% lower than March 26. After a series of delays, Truth Social's stock market debut followed its 2021 merger with blank-check provider Digital World Acquisition.
Trump's net worth fluctuated with the stock. On March 26, the shares reached $79.38, valuing the Republican presidential candidate's dominant interest at over $6 billion. Trump's net worth rose to $6.5 billion, placing him on the Bloomberg Billionaire Index for the first time. His assets are worth $2.6 billion.
Trump may be unable to sell or borrow against his media firm interests due to six-month lockup rules, but his net worth may rise as he appeals a $454 million civil fraud verdict. Short sellers are interested in selling borrowed shares to profit from a stock price drop.
Digital World Acquisition was the most shorted Special Purpose Acquisition Company (SPAC) as of March 25, when it stopped trading, according to S3 Partners. Short sellers had sold about 16% of its free float short before the company started trading under the "DJT" ticker.
S3 data shows 12% of DJT free float sold short. The business found DJT to be the most expensive stock to borrow with at least $50 million of short interest. "It is the primary reason we are not seeing significant short selling in the stock," said S3 Partners managing director of predictive analytics Ihor Dusaniwsky.
The stock's options now have open contracts with strike prices ranging from $2.5 put to $100 call. Divergent stock opinions are expressed by vigorous trading. Out-of-the-money options and calls have strong open interest "Interactive Brokers chief strategist Steve Sosnick said.
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