Tom Sosnoff, CEO of Tastytrade, predicts a challenging road for Trump Media And Technology Group’s stock (NASDAQ:DJT), with significant downside potential.

What Happened: Sosnoff shared his insights on the future of Trump Media & Technology Group’s stock during CNBC’s “Last Call” on Monday.

“It’s being priced right in the next 80 days with almost $30 of downside,” Sosnoff said, highlighting the cost disparity between puts and calls for DJT stock.

“The puts are about three times more expensive than the calls.”

"It's being priced right in the next 80 days with almost $30 of downside," says @tastytrade CEO Tom Sosnoff on $DJT. "The puts are about three times more expensive than the calls." pic.twitter.com/AZm9644Ozb

— Last Call (@LastCallCNBC) April 1, 2024

See Also: Whales On The Move: Transfers Of Over 264 Million Dogecoin On Robinhood Spark Market Buzz

Why It Matters: The options market’s sentiment echoes the skepticism of “Bond King” Bill Gross, who has also taken a bearish stance on DJT stock. Gross has been vocal about his decision to sell DJT options, labeling it a courageous move given the stock’s recent listing and the hype it has generated.

Furthermore, DJT’s valuation has been a hot topic, with comparisons showing that it’s priced 52 times higher than tech giant Nvidia on a particular data point. This has led to discussions about DJT’s meme stock potential and the risks it poses for investors considering short positions.

Read Next: ‘Bond King’ Bill Gross Bets Against Trump’s Newly-Listed Stock: ‘Genius…With The Courage To Sell DJT Options’

Image by mundissima via Shutterstock

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