DWAC soars after joining team Trump.

The SPAC company merged with Trump's social media platform causing shockwaves on the stock market as shares soared causing several trading halts as the stock was going up too fast for the SEC 'cicrcuits'. Had it not been for the trading halts it would have likely soared over 200%.

The trading halts and day traders taking profits led to the stock dropping significantly from its high before close on Friday, closing at $90 a share....still up about 900% for the week.

It is tough to give a realistic value of the stock's value. It is very hyped. Some of the more bullish believe this platform will be revolutionary and bring in more money than other social media giants like twitter and Facebook, if so then the stock has a bit more room to run up.

That's interesting. I wish I would have bought some of that before it went up in price....but who would have guessed it would do that.

a reply to: jrod

I've been trading it...

But the company isn't going to make more than Twitter or Facebook. Those companies have international reach. If we're being honest, most are going to assume the site is political in nature which will likely turn off most foreign users. Domestically I imagine many who disagree with the founders politics don't participate either.

There is also likely going to be some small legal hurdles along the way. The SPAC was less than thirty days old and already has a target. This is problematic for two reasons. First, SPACs aren't supposed to know who their target is before inception. Whether or not they did is a question, but there's a decent chance a legal inquiry will be made to investigate this. Many times this is a private inquiry, and it's pretty normal to challange a SPACs target. Second reason the young SPAC is a problem is they are supposed to bet the target, which takes time and a lot of investigation. Same possible results as problem one.

Now, the bull case is there is a very low float, options chain opens tomorrow, and a loyal following can buy that float multiple times over.

None of these are based off of any of my political opinions, I'm buying more tomorrow and plan to sell them very soon.

This is likely going to be a very volatile stock, just read about what you're doing, especially the process of SPAC combinations before you trade on this.

originally posted by: rickymouse
That's interesting. I wish I would have bought some of that before it went up in price....but who would have guessed it would do that.

Day trading capitalists?

a reply to: ColdWisdom

Day trading capitalists?

Absolutely. Some may find it a better option than
hoping they'll not lose their employment due to
mandates.

a reply to: CriticalStinker

Long term they want to.launch their own steaming service to rival YouTube and television station to rival CNN...but who knows. If this happens long term they are solid.

I expect more volatility Monday with large swings in both directions as more have found out about the stock.

Stock prices are tough...popularity is often more important than fundamentals. Toyota makes and sells 20 times more cars than Tesla yet Tesla's stock is over worth over 6 times as much because of its popularity...granted Tesla is a growing company and future growth is crucial in blue chip stocks.

More news about the details of the merger will come out this week.

Obviously too early to tell if this will have long term strength or if it is a 'meme' stock that will fall quickly once the hype settles down.

a reply to: CriticalStinker

I held a small amount over the weekend in hopes of it being hyped over the weekend and will run pre-market.

The low float is crucial, especially if demand is high Monday morning.

a reply to: jrod

I just don't think that this brand is going to be bigger than anything in FAANG.

When it comes to investing, I do my best to make sure my opinion is agnostic as possible, but I do have to consider that there is polarity behind the brand. Domestically it's going to be and issue, and internationally it may just be disinterest.

But the low share size does give it real pumpability, so I won't discount the idea this thing could soar. The only caveat here is upon combination the warrants will add about 14 million shares to the mix. Now, this isn't the end of the world, but it will still increase circulating shares by about 50%. This is open knowledge though, so some of that is priced in.

These SPAC deals can hit turbulence and aren't a sure thing until combination is complete. I've been dabbling in SPACs for a little over a year now, and I've seen some shakiness during the transaction phases. CCIV and Lucid come to mind, and while the timing of that was a bit different, it was part of the reason the SPAC bubble saw a cooling off phase.

All that said I do think it rips short term, especially with the options chain opening up tomorrow. Anyone wanting to sell options on this is likely going to do so covered. Meaning for every one options contract sold, most sellers are going to have 100 shares backing it. With super volatile stocks like this you really don't want to sell naked contracts, and a lot of people are going to want to buy calls and puts.

If 50,000 contracts get sold tomorrow, that's going to be 5m shares locked up until the contracts are satisfied. That number is arbitrary and pulled out of my ass since no one knows how many will get sold, but it's just an example.

And I hate to use cliche terms that often get overused with meme stocks, but the mechanics really could make a gamma and or short squeeze depending on how this plays out. The float is so low for the amount of attention this has gotten. We went through the whole supply 17 times the first day of trading, and that might get bottle necked with options in the mix.

I'm really interested to see what happens, I'll be buying in premarket in the morning and possibly selling on a pop to wait for a dip to buy calls.

a reply to: CriticalStinker
I literally slept through this Thursday morning and missed the initial madness.... Learned a lot though, may have to set up an alarm clock tied to key stock alerts...however setups like this are few and far between.

Glad that we have something to rival the GME madness again.

Understanding the psychology of the herd I have learned is more important than understanding the fundamentals and technical analysis when it comes to day and swing trading.

I figure this is a good site to talk about this stock, as ATS is full of Trump fans.

I try to look at stocks from a non-bias view, bullish and bearish. I have noticed on some of the popular trading sites, some folks truly get offended when you offer a bearish opinion on a stock they love and hold...CEI comes to mind. I try to learn from all sides if someone is bearish I was to to know why, same with why they are bullish. This is how I have come to the conclusion that psychology is crucial in trying to predict short term trends.

That said, I think we both know bearish side of DWAC very well.

I do think we will see more trading halts tomorrow and hope it does not hurt the momentum like it did Friday.

a reply to: CriticalStinker

Also no way this brand will be bigger than anything on FAANG. I would be ecstatic if that happened because screw Facebook and Google.

I do think some think it will be that big and and many more want it to go huuuge, this is fueling the hype.

originally posted by: ColdWisdom

originally posted by: rickymouse
That's interesting. I wish I would have bought some of that before it went up in price....but who would have guessed it would do that.

Day trading capitalists?

lol

originally posted by: jrod
a reply to: CriticalStinker

I held a small amount over the weekend in hopes of it being hyped over the weekend and will run pre-market.

The low float is crucial, especially if demand is high Monday morning.

same!

originally posted by: rickymouse
That's interesting. I wish I would have bought some of that before it went up in price....but who would have guessed it would do that.

right?? I sold @52.01 then of course it went to 175 lol

Starting to run pre-market...should of bought more.

Meanwhile MARK, BENE, PHUN(stocks with ties to DWAC) are going absolute bonkers. Unfortunately I went with GROM as my gamble and they are getting the same love.

There will be trading halts today! Let's hope it does not ruin the momentum and DWAC will break $200.

a reply to: jrod

Gonna be hard for it to run. The options pricing is outrageous, it can't serve as a catalyst with the prices it has. The IV is understandably high, but I think since there's so few shares, people aren't selling calls.

a reply to: CriticalStinker

I should sold at open...oh well. We did have a halt on some trading platforms shortly after open, probably to set up.options.

It looks like there is a support level around $90, so it will be tough for it to fall below that, at least today.

A lot of shares are going to be locked up.in option chains...so tough to get another big run.

I made my money else where. PAE was good to me today, had 7.50 calls I bought for 0.20....sold them for well over 100x.