$Trump Media & Technology(DJT)$ – The foundation seems to be cracking.
Low volatility acts like a solid concrete foundation for the synthetic overhang. Volatility is the earthquake that cracks the slab and shakes the beams.
We saw that recently: a flush of about -10% intraday on a large loan pool refresh, followed by a full recovery to close green at 9.66.
Gamma jumped roughly 20%. Algorithms appear to have flipped into accumulation mode on the dips.
The elastic pool had to work overtime and still couldn't hold the price down. Big swings are now exposing the fragility—higher cost to borrow, forced hedging, and synthetics getting more expensive to maintain.
The foundation is cracking. The S-4 filing and TAE fundamentals could do the rest.
I'm still holding for the long-term TAE story. We'll see.
$Palantir Technologies Inc.(PLTR)$ and $Rocket Lab USA, Inc.(RKLB)$ should take note, this could be bigger.
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