You know me from my previous SpaceX 400 bagger DD and other plays. Important note - this is NOT a post to talk about politics, nobody cares who you’re voting for. This is just how to make money positioning yourself with stocks/options before and after the midterms. Right now, Reps control both chambers of Congress. The prediction markets show Dems are heavily favored to win. As we’ve seen during EVERY election, there are certain stocks that always run up big and move crazy after elections.
$MSOS \- MSOS is an ETF that holds the top cannabis/weed companies. In the past, weed stocks have had absolutely crazy moves after elections. After the 2020 election, certain weed stocks jumped over 2,000%. In contrast, when Trump and the Reps won in 2024, $MSOS and other weed stocks fell over 80% in the coming months.
There’s a reason for the big moves. The Dems want to pass several bills that would be positive for the weed sector. In fact, just yesterday, Congressman Steve Cohen introduced a bill that would fully legalize marijuana.
The last big event happening this year is the Midterms. I believe traders and hedge funds will start positioning themselves for the election on Monday, and the run-up will start. Since AI and Crypto would be under pressure if the Reps lose (regulation, anti-data centers, anti-CLARITY Act), I believe a lot of the hedging will be with weed stocks. We already saw what happened to tech and crypto yesterday. Since $MSOS is an ETF that holds the top weed companies, I suspect this will be the main focus for the election hedge Monday/Tuesday.
https://i.redd.it/4wzjz5nz5uyh1.png
Positions \- Lots of shares, Nov 6th $4 Calls and Nov 6th $4.50 Calls
We’ve seen this stock move crazy before. On December 12th, $MSOS went up 55% in a single day just because Trump was preparing to reclassify marijuana from Schedule I to Schedule III. That news event wasn’t even that big of a deal, but it went up over 50% anyway.