Trump was found guilty! Options Straitegy to Short-sell DJT.

The U.S. election race is becoming increasingly fierce, but Trump suddenly became the first former president of the United States to be convicted of a crime.

On May 30, local time, a jury in a New York court ruled that former U.S. President Trump was guilty of the "hush money" case and was guilty of all 34 charges he was charged with. Trump's sentencing will be on July 11 , just days before Republicans will officially announce him as their 2024 Republican presidential candidate.

It is reported that Trump has 34 felony charges, each of which can be sentenced to up to 4 years in prison if convicted.

However, Trump himself has pleaded not guilty to the relevant charges, saying that the proceedings against him are politically motivated.

What happens if Trump is imprisoned?

Typically, defendants convicted of a felony are sentenced to a certain amount of time in jail, but this is not required by law. Melkan could sentence Trump to probation, especially if he believes the former president is 77 years old and a first-time offender with no criminal history, leaving him with a variety of punishment options. Trump could also be ordered to pay some form of restitution and remain free pending trial.

Can Trump appeal?

Yes, he immediately said he would challenge the verdict and said the fight was "far from over." He can only appeal the verdict in New York State after the trial. The first step is the New York State Court of Appeals. Ultimately, the appeal may reach the New York State Supreme Court and, ultimately, the U.S. Supreme Court.

Trump’s $Trump Media & Technology(DJT)$

Shares of Trump $Trump Media & Technology(DJT)$ , the operator of the former president's social media company Truth Social, fell 6.13% immediately after Trump was found guilty but now show an increase by 2% in pre market.

https://www.nasdaq.com/

https://www.nasdaq.com/

At this time, investors who wish to short-sell Trump Digital Group can choose the bear call spread strategy in options, which can limit the short-selling risk to a certain risk.

Bear Call Spread Strategy

A bear call spread is an options strategy in which options traders anticipate that the price of the underlying asset will fall in the future, wish to short the underlying, and wish to limit the transaction to a certain risk range.

Specifically, a bear call spread is achieved by purchasing a call option at a specific strike price while simultaneously selling the same number of call options with the same expiration date at a lower strike price.

$Trump Media & Technology(DJT)$ Options Short Selling Case

The current price of Trump Digital Technology Group is $48.66. Assuming that investors expect it to fall to around $40 in the next month,

Step 1: Sell a call option expiring on June 28 with an exercise price of $40.

Step 2: Buy a call option with the same expiration date and an exercise price of $55. The bear market spread is established.

When the stock price is below the short call strike price (less than $40), the strategy achieves a maximum profit of $853.5, and when the stock price is above 55, the maximum loss is $646.5.

Truth Social: Trump's DJT stock plummets days after going public

The primary advantage of a bear call spread is the reduced risk of a short sale (purchasing a call at a higher strike price helps offset the risk of selling a call at a lower strike price).

Because shorting a stock theoretically has unlimited risk if the stock moves higher, shorting using a bear call spread is far less risky than shorting the stock directly.

Dear Tigers, what do you think of the follow-up market?

How would you trade DJT?

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