[Options] Crypto Juice

Sean McLaughlin
August 9, 2023

Today on the Morning Show, JC was talking about bitcoin and how if you want to underperform the next leg higher in crypto, then own bitcoin. But if you really want to get some juice for the next crypto rally, the crypto mining stocks are how to participate!

In particular, both JC and Strazza like Riot Platforms $RIOT and Marathon Digital Holdings $MARA.

And specifically, we all like what could have been a recent "oops" or fakeout-breakdown that may have just shaken out all the weak hands, clearing a path for the next move to new cycle highs:

With $MARA flirting with breaking back above $16.00 per share today and implied volatility in the options near yearly lows, it feels like high time to catch the whipsaw back to highs.

Here's the Play:

I like buying $MARA January 16-strike calls for approximately $4.20 per contract. This debit I pay today is the most I can lose in this trade.

However, if $MARA can't hold the $15 level, that is my signal to exit this trade and salvage whatever I can of the remaining call premium.

If we get the upside we're looking for, I'll look to take my original risk capital out of the trade if/when $MARA trades to/through $25 per share. And then I'll take the remaining position off if we hit the team's upside price target of $31.

Go big or go home!

If you have any questions on this trade, please send them here.

~ @OptionsSean

P.S. We do trades like this regularly. If you'd like to leverage Best-in-Class technical analysis into smarter directional options trades, try out All Star Options Risk Free! Or give us a call to learn more: 323-421-7991.

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