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Rooting For Trump To Fail Has Made His Stock Shorters Millions

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The following information is from an article published by the Associated Press: Rarely has there been such a lucrative opportunity as betting on Donald Trump’s failure.

Despite significant buying activity from Trump supporters and volatile fluctuations that frequently coincide with the candidate’s current polling results, legal proceedings, and public statements on Truth Social, a tenacious group of primarily non-professional Wall Street investors have successfully earned millions of dollars in recent weeks by speculating that the stock price of Trump’s social media company, Truth Social, will continue to decline.

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Rooting For Trump To Fail Has Made His Stock Shorters Millions

Many of the interviewed investors, as reported by The Associated Press, claim that their pessimistic investments using “put” options and other trading instruments are motivated not by their personal opinions of the former president (most of whom do not hold a favorable view), but rather by their confidence in the dismal financial performance of a company that earned less money last year than the average Wendy’s hamburger franchise.

“This company is not profitable. … “It is illogical,” stated Elle Stange, an advertising executive from Boise, Idaho, who approximates that she has earned $1,300 by wagering against Trump Media & Technology shares. “He overestimates his abilities as a businessman.” Many of his ventures fail rapidly.

Jeff Cheung, an IT security professional in Seattle, is certain that this will eventually reach a value of zero.

By Friday morning, exactly one month after Trump Media’s IPO caused its stock to soar to $66.22, it had sharply declined to $38.49. According to an investigation by AP using data from research firms FactSet and S3 Partners, investors who use puts and engage in “short selling” have currently accumulated paper profits of at least $200 million. This figure does not consider the fees associated with puts, which can vary from one deal to another.

However, novice traders, who often only risk a few thousand dollars each, believe that the stock’s volatility makes it premature to claim success. Currently, they are capitalizing on their investments, allowing other bets to remain active, and discreetly observing the most recent fluctuations in stock prices in various locations such as their office cubicle, kitchen table, or even while using the toilet.

Other alarming occurrences have occurred, such as last week, when the stock ticker for the former president, DJT, suddenly increased by around 40% within a span of two days.

“I am uncertain about the future movement of the stock,” states Richard Persaud, a day trader from Schenectady, N.Y., as he checks his iPhone during the sudden increase in stock prices. “The current valuation is excessively inflated.”

Those who spoke with the AP perceived it as an additional political advantage to be aware that their bets resulted in a 50% decline in the value of Trump’s 65% investment. If any of their forecasts prove accurate, they may eventually reduce it to zero, rendering it difficult for him to utilize it to pay his substantial legal expenses or fund his Republican presidential campaign.

They still have a considerable distance to cover. The value of Trump’s interest remains at $4 billion.

Typically, investors anticipating a decline in a stock’s value, particularly a bold group of hedge fund traders known as “short sellers,” will conduct extensive research. They will thoroughly examine financial accounts, acquire specialized knowledge in a particular business, engage in discussions with competitors, and may even seek assistance from “forensic accountants” to uncover concealed vulnerabilities in financial records.

There is no requirement for Trump Media’s case. The corporation’s comprehensive 100-page financial report, which is situated in Sarasota, Florida, contains all the necessary information. The company incurred significant losses of $58 million in the previous year despite generating only $4 million in income from advertising and other sources.

According to the auditor’s assessment, the losses incurred by Trump Media are significant and cast doubt on its capacity to continue operating.

Is this a dream scenario for a short seller? Or is it a terrifying dream?

Manny Marotta, an inexperienced trader, has two computer screens at his house. One screen is used for business, while the other displays the movements of DJT stock, allowing him to assess his gains or losses.

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Rooting For Trump To Fail Has Made His Stock Shorters Millions

The situation appeared unfavorable early this week.

The legal writer from suburban Cleveland had earned a profit of approximately $4,000 on the purchase of “put” options made in the previous weeks. However, the television display that morning depicted investors, likely affluent individuals, purchasing substantial quantities of DJT shares, causing the stock to rise once more.

“The value of my options is decreasing with each passing minute,” remarks Marotta, further stating that DJT is being manipulated. “It’s absurd.”

Anticipating a decrease in stock value is particularly agonizing for “short sellers,” who incur a fee to borrow shares from other individuals. The concept is to promptly sell the items based on intuition and thereafter repurchase the same quantity at a significantly lower price prior to returning them to the lender. Short sellers are able to keep the profit they make from the difference after deducting a small fee.

In the instance of DJT, the charge is far from being modest.

At one point early this month, the annual cost reached 565%, which implies that short sellers would have only two months before any potential profits would be completely offset by fees, even if the company became worthless. According to data from Boston University’s Karl Diether and Wharton’s Itamar Drechsler, who have researched short selling over the past twenty years, just three other equities in recent memory have surpassed this exceptionally high rate.

If there is a significant increase in purchasing by Trump supporters who view it as a means of endorsing their candidate, the potential losses might rapidly escalate.

“It is alarming,” states Drechsler, who compares purchasers of Trump’s stock to steadfast sports enthusiasts. “It embodies all the characteristics that one would typically hope the stock market does not possess.”

According to Shannon Devine, a spokesperson for Trump Media, the company now possesses a substantial amount of $200 million in cash and has no outstanding debts. Devine also criticized the Associated Press (AP) for allegedly favoring those who openly oppose Donald Trump.

Seattle trader Cheung views DJT’s unusual traits as a motive to place a bet against the company rather than avoiding it. Once the lock-up period expires, the ex-president is expected to sell his shares, causing a significant decline in the market and price decline. Furthermore, suppose he chooses not to do so. In that case, other individuals with insider information whose lock-up periods are ending will be apprehensive that he would take action, prompting them to swiftly take advantage of the opportunity to sell at a favorable price before it declines.

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Rooting For Trump To Fail Has Made His Stock Shorters Millions

“The individual who sells out first will make the most profit,” Cheung asserts. “All individuals will engage in selling.”

However, he is taking measures to mitigate any financial losses by hedging some of his “put” wagers with the acquisition of “calls.” The latter are likewise financial instruments derived from an underlying asset, but they have an inverse relationship with the stock price, resulting in profits when the stock price increases. Cheung anticipates that regardless of whether the puts or the calls generate profits, he will earn sufficient returns from one to compensate for the loss incurred by the other.

If this appears excessively intricate, a more straightforward approach exists to generate profits by placing bets against Trump.

Offshore betting firms, which have designated President Joe Biden as the frontrunner for the 2024 election, are accepting 2024 election wagers.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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US Seeks Information From Tesla On How It Developed And Verified Whether Autopilot Recall Worked

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DETROIT — The company’s Autopilot semi-automatic driving technology is present in more than 2 million vehicles, and federal highway safety investigators want Tesla to explain how and why it developed the repair.

The National Highway Traffic Safety Administration in the United States has 20 crash reports after the recall remedy was distributed as an online software update in December, raising doubts about the recall’s effectiveness.

The question of whether Autopilot should be permitted to run on roadways other than limited access highways was also addressed by the recall update. Increased warnings to drivers on roads with intersections served as a remedy.

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US Seeks Information From Tesla On How It Developed And Verified Whether Autopilot Recall Worked

However, investigators said they were unable to distinguish between alerts to drivers to pay attention sent before the recall and following the installation of the revised software in a letter to Tesla that was published on the agency’s website on Tuesday. The agency stated that it would assess the effectiveness of driver warnings, particularly in cases where a driver-monitoring camera is obscured.

The government focused on how Tesla employed human behavior to test the efficacy of the recall after receiving voluminous information on the company’s development of the patch.

The letter, according to Phil Koopman, a professor at Carnegie Mellon University who specializes in automated driving safety, indicates that the recall was largely ineffective in resolving Autopilot issues and was instead an attempt to appease the NHTSA, which had requested the recall following more than two years of research.

Everyone watching can tell that Tesla attempted to take the least amount of action to see what they could get away with, according to Koopman. “And NHTSA needs to act quickly to prevent other automakers from releasing subpar solutions.”

Safety advocates have long feared that Autopilot was not intended for use on roads other than limited-access highways, despite the fact that it can keep a vehicle in its lane and at a safe distance from objects in front of it.

The NHTSA is reacting to lawmakers’ criticism for what they see as a lack of action on autonomous vehicles, according to Missy Cummings, a professor of engineering and computing at George Mason University and expert on automated vehicles.

“The feedback loop is functioning, despite how clumsy our government is,” Cummings stated. “I believe the leadership of the NHTSA is now persuaded that this is an issue.”

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US Seeks Information From Tesla On How It Developed And Verified Whether Autopilot Recall Worked

In an 18-page letter, the NHTSA questions Tesla on how it applied human behavior science to Autopilot’s development and how important it is to include human factors.

Additionally, it requests that Tesla list all positions involving the assessment of human behavior along with the credentials of the employees. Additionally, it queries Tesla on the status of the positions.

The Associated Press contacted Tesla early on Tuesday to inquire about the letter.

Tesla is firing about 14,000 employees, or 10% of the company, as part of a cost-cutting measure to address declining worldwide sales.

Cummings expressed her suspicion that Elon Musk, the CEO, would have fired anyone who possessed knowledge of human behavior, a critical ability required to implement partially automated systems like Autopilot, which are incapable of operating on their own and necessitate human intervention at all times.

“You better have someone on your team that knows what they are doing in that sector if you’re going to have a technology that depends upon human interaction,” she stated.

According to Cummings, her research indicates that the human brain is left with limited functions once a driving system takes over human steering. Many drivers tend to check out and rely too much on the system.

She stated, “You can be a million miles away in your head, you can have your eyes on the road, and you can have your head fixed in one position.” “You won’t be made to pay attention by all the driver monitoring technologies in the world.”

The NHTSA also requests information from Tesla in its letter regarding how the recall remedy resolves driver misunderstanding regarding whether Autopilot has been turned off if they apply force to the steering wheel. In the past, drivers might not have realized immediately that they needed to take control of the vehicle if Autopilot had been disabled.

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US Seeks Information From Tesla On How It Developed And Verified Whether Autopilot Recall Worked

A feature that provides a “more pronounced slowdown” to notify drivers when Autopilot has been turned off was added to the recall. However, drivers must manually activate the function; it is not done automatically by the recall remedy. Investigators questioned how many motorists have made that move.

Telsa is requesting NHTSA. “What do you mean that even though you have a cure, it never turns on?” stated Koopman.

According to him, the letter indicates that the NHTSA is investigating whether Tesla conducted tests to ensure the changes were effective. “After examining the solution, I found it difficult to accept that numerous analyses have demonstrated that these will enhance safety,” Koopman stated.

According to the agency, Tesla also released safety improvements following the recall patch to lessen hydroplaning-related crashes and collisions in high-speed turn lanes. The NHTSA declared that it would investigate Tesla’s decision to omit the changes from the initial recall.

According to safety experts, NHTSA may pursue additional recall remedies, impose restrictions on the Autopilot operating range, or even order Tesla to disable the technology until it is corrected.

In 2021, the NHTSA launched its Autopilot investigation in response to 11 instances of Teslas hitting parked emergency vehicles while operating on Autopilot. The NHTSA stated in documents outlining the reasons for the investigation’s termination owing to the recall that it eventually discovered 467 Autopilot-related collisions that resulted in 54 injuries and 14 fatalities.

SOURCE – (AP)

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Trump Will Be First Ex-President On Criminal Trial. Here’s What To Know About The Hush Money Case

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NEW YORK — Opening the hush money case on Monday, with jury selection, is Donald Trump, who will become the first former president to face criminal charges.

The case would require the presumed Republican presidential nominee to balance weeks of court appearances in Manhattan to defend himself against accusations of marital infidelity that surfaced during his 2016 first campaign for president.

It is the only one of the four criminal charges against Trump that might result in a decision before voters decide in November whether to return him to the White House, and it has significant political repercussions.

The following information pertains to the charges against Trump and the hush money case:

The former president is charged with fabricating internal Trump Organization documents as part of a plot to suppress negative news that he believed would harm his candidacy in 2016. This accusation is especially serious given that, at the time, Trump’s remarks about women were negatively impacting his reputation.

The allegations center on payments made to two women who claim to have had extramarital affairs with Trump years ago: porn star Stormy Daniels and Playboy model Karen McDougal. Another person who claims to have information regarding a kid he believes Trump may have fathered out of wedlock is a doorman at Trump Tower. Trump claims that none of these reported sex dates are real.

The National Enquirer supermarket tabloid’s publisher paid McDougal $150,000 and Daniels $130,000 thanks to Trump’s former fixer and lawyer, Michael Cohen. This is part of a dubious journalistic practice known as “catch-and-kill,” in which a publication pays for exclusive rights to someone’s story with no intention of publishing it, either as a favor to a celebrity subject or to gain leverage over the person.

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Trump Will Be First Ex-President On Criminal Trial. Here’s What To Know About The Hush Money Case

Cohen was paid incentives and additional payments by Trump’s company, according to the prosecution, and all of these payments were fraudulently recorded in Trump Organization records as legal fees. Cohen has separately entered a guilty plea to breaking federal campaign finance law in relation to the payments.

Thirty-four felony counts of manipulating business records are brought against Trump. The charge carries a maximum four-year prison sentence; however, the judge will ultimately decide whether or not he serves time in prison if found guilty.

The counts are connected to many checks issued to Cohen as payment for his assistance in clearing Daniels’ debt. These payments, spread over a year, were noted in several internal business documents as legal costs.

Prosecutors must prove that Trump intended to commit or hide a second crime in addition to falsifying or causing business records to be filed falsely, which would be a misdemeanor, to prevail on the felony accusation.

Although the additional offense was not included in Trump’s indictment, Manhattan District Attorney Alvin Bragg has subsequently stated that evidence indicates his activities were intended to hide tax and campaign finance violations on both a state and federal level. Some experts say it’s an unconventional legal tactic that can backfire.

Judge Juan M. Merchan will summon a large number of people into his courtroom to start the process of selecting 12 jurors plus 6 alternates. The goal is to exclude candidates who cannot serve due to suspected prejudices or other reasons. Before sending groups of the remaining jurors into the jury box to answer 42 questions, the judge stated that he would excuse anyone who showed by a show of hands that they could not serve or be fair and impartial. The only way potential jurors will be identified is by number since the judge has mandated that only prosecutors, Trump, and their legal teams will be aware of their identities.

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Trump Will Be First Ex-President On Criminal Trial. Here’s What To Know About The Hush Money Case

Potential jurors will be questioned about a variety of topics, including whether they follow the former president on social media, whether they have ever worked for a Trump organization or attended a rally, and whether they support or follow far-right organizations or groups like the Proud Boys and Oath Keepers, whose members were part of the pro-Trump crowd that stormed the U.S. Capitol on January 6, 2021, or the far-left group known as Antifa, which stands up to fascists and neo-Nazis, especially during demonstrations.

Given that he was the one who oversaw the payoffs, Cohen—a former Trump supporter turned critic—is anticipated to be a crucial prosecution witness. Cohen stated that his objective was “to tell the truth” and that he is not seeking retribution, but he did state that Trump “needs to be held accountable for his dirty deeds” before testifying before the grand jury that delivered the indictment last year. After entering a guilty plea in 2018 to federal charges involving violations of campaign finance laws for orchestrating the payments to Daniels and McDougal, Cohen was sentenced to prison.

Daniels, whose real name is Stephanie Clifford, is one of the other anticipated witnesses. Daniels claims that in 2006, she had an unwanted but consenting sexual encounter with Trump. Trump claims it never took place.

Trump has blasted the lawsuit as an attempt to harm his chances of winning the presidency in 2024 and denied any wrongdoing. Trump has admitted to paying Cohen back and stated that the purpose of the payment was to prevent Daniels from disclosing the alleged encounter to the public. However, Trump claimed in 2018 that it was unrelated to the campaign.

It is probable that the legal team representing Trump would attempt to discredit prosecution witnesses like Daniels and Cohen to attack the case. In an attempt to circumvent the judge’s gag order, Trump called the two of them liars. This aims to reduce the president’s divisive remarks regarding the case. To try to convince jurors that Cohen cannot be believed, Trump’s attorneys are anticipated to portray Cohen as a con man and bring up his conviction for several federal offenses in addition to his disbarment.

Recently, Trump shared a photo of Daniels’s 2018 written statement on social media, in which she denied having a sexual relationship with him. Daniels quickly denied making the claim and admitted to having a sexual encounter. She claimed that a non-disclosure agreement was the reason for her denials and that she felt compelled to sign the statement because the individuals concerned “made it seem like I had no choice.”

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Trump Will Be First Ex-President On Criminal Trial. Here’s What To Know About The Hush Money Case

Due to court battles and appeals, Trump’s three other criminal matters will likely remain unsettled until after the November election.

Special Counsel Jack Smith’s 2020 election interference case is still pending, as President Trump continues to argue that his conduct inside the White House exempts him from prosecution. The US Supreme Court is expected to hear arguments on the case in late April.

In his other lawsuit, Smith is accused of illegally keeping secret documents at his Mar-a-Lago residence. Although the trial was supposed to start in May, the court still needs to set a new trial date after hearing arguments last month.

The Georgia lawsuit, which charges Trump and his associates of plotting to reverse their loss in the state’s 2020 election, has to schedule a trial. Lawyers are now asking an appeals court to examine whether Fulton County District Attorney Fani Willis should be removed from the prosecution due to a romantic relationship she had with a former top prosecutor who withdrew from the case, despite the prosecution’s suggestion that the trial takes place in August.

Trump has entered a not guilty plea in all three cases and maintained his innocence.

SOURCE – (AP)

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Tom Brady’s Netflix Roast Features Lots Of Humor, Reunion Between Robert Kraft And Bill Belichick

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Inglewood, California – During a made-for-streaming comedy live event on Netflix on Sunday night, Tom Brady received criticism from comedians, his teammates, and his longtime coach three months before he became the target of ridicule as Fox Sports’ top NFL commentator.

And Brady is sure to do well after three hours of “The Greatest Roast of All Time” at The Forum.

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Tom Brady’s Netflix Roast Features Lots Of Humor, Reunion Between Robert Kraft And Bill Belichick

It’s like a football game.” You start with a game plan, and then you see how the approach works, and then you change on the fly,” Brady stated before to the tournament. “This is what a locker room has felt like for me all these years. So I’m not used to people not making fun of me.

Comedian Nikki Glaser, whose monologue was one of the night’s funniest, referred to the roast as “the comedians’ Super Bowl” and explained how the competitiveness level was increased as everyone tried to outdo each other.

Brady faced more blitzes and pressure than he would in a normal NFL game, as an outstanding lineup of comedians, former teammates, and opponents entered the stage. Before the event, host Kevin Hart stated that no issue was off limits, and he went on the offensive early, making jokes about Brady’s ex-wife, Gisele Bündchen.

“Gisele served you an ultimatum. She said, “You retire or we’re done.” When you have the opportunity to go 8-9 and all it costs you is your wife and children, you have to do what you have to do,” Hart added, referring to Brady’s return from a brief retirement in 2022 for one more season.

Brady only objected to a joke when Jeff Ross mentioned Patriots owner Robert Kraft and massages. In 2019, Kraft was charged with a misdemeanor for paying for sex at a Florida massage parlor. Prosecutors later withdrew the charge after judges prohibited the use of video from police cameras put inside the massage parlors.

Brady approached Ross and murmured in his ear, “Don’t say that (stuff) again,” but it was plainly recorded on the microphone and heard by those watching the roast from home. It was not heard by those present.

Following Hart’s encouragement, Kraft and former Patriots coach Bill Belichick took a shot together on stage.

Belichick was sacked in January after 24 seasons with the Patriots, and much has been written about the tension between the six-time Super Bowl champion coach and owner in recent years.

Kraft thanked Belichick for what the two had done after joking that this was like a reunion and that “unlike many family reunions, there are some people I am desperately trying to avoid.”

“I want to declare that this is the best coach in the history of the game because he accomplished what no one else has. And having Tom Brady alongside him was the greatest honor the Lord bestowed upon me,” Kraft remarked.

It was hardly Belichick’s first shot (of alcohol). Following his monologue, Rob Gronkowski convinced Belichick and Brady to take a shot together. Gronkowski celebrated by spiking a shot glass.

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Tom Brady’s Netflix Roast Features Lots Of Humor, Reunion Between Robert Kraft And Bill Belichick

Belichick arrived at the start of the roast during a pre-recorded piece, telling Brady that he was “starting the roast” rather than Drew Bledsoe. Brady took over for Bledsoe in 2001 after he was injured in a Week 2 game against the Jets, and he guided the Patriots to their first Super Bowl victory that season.

“For all of you out there who think about who’s responsible for the Patriots success during the time Tom and I was together — was it Tom or me — in reality the truth of the matter was it was both of us because of me,” Belichick stated.

However, near the show’s end, Brady had some fun at Belichick’s expense.

I’ve been out of the game for a minute, so I’m curious: how many Super Bowl rings have you won since I left?” Brady asked. “Perhaps it is not only the guy on the sidelines. When I attend the Indy 500, I don’t ask the winning driver, “Hey, did you gas up your car?”

Before the show, Hart stated that he believed Brady was in a good mood heading into the event. Brady did arrive well prepared, having practiced his speech with several individuals, including those from Fox Sports.

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Tom Brady’s Netflix Roast Features Lots Of Humor, Reunion Between Robert Kraft And Bill Belichick

“You have to be able to laugh at yourself, and I love that he is doing that in this forum,” Hart remarked. I admire how he embraces the things that some people believe he avoids. It’s a celebration of greatness, and we’re having fun with it.”

Bledsoe also stated that Brady had a sense of humor, but this stage was different.

“I felt he was incredibly bold. “There’s plenty of material to mock him about,” Bledsoe remarked. “The truth is that roasting each other is something professional athletes do daily in the locker room. As a result, you should go in with thick skin. Now, others can laugh along with it.

SOURCE – (AP)

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