[Options] Straight Gamblin'

Sean McLaughlin
April 22, 2024

I came into today's Flow Show not having much of an appetite for any aggressively bullish bets. But by the show's end, I'm putting on a straight gamble! How the hell did that happen? Watch the video above to find out.

The chart and setup that piqued my interest is this one in Riot Platforms $RIOT:

Now that the Bitcoin "halving" is out of the way, will the prior RIOT/Bitcoin correlation that was strong until the last three-ish months reassert itself?

And if it does, will $RIOT catch up to Bitcoin? Or will Bitcoin catch down to $RIOT?

Judging by the basing action we've witnessed in Bitcoin in recent weeks, I think the next big move is higher. And if $RIOT "catches up"? It could be a monster winner in a hurry.

Bonus kicker: Riot Platforms announces earnings on May 8th. That could be the big push we need.

Here's the Play:

I like buying $RIOT May 11-strike calls (regular monthly expiration), for $1.00 or less. This premium I pay today is the most I can lose if I'm dead wrong and I'll size my position accordingly.

That said, I'll look to cut my losses if/when these calls lose 50% of their value.

In the meantime, Steve and I like the $18 level as our upper resistance level which would be a logical place to take some profits. If/when we get there, I'll sell half of my position (which will lock in some guaranteed profits), and let the rest ride with a trailing stop loss.

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

If you missed my most recent ASO video Jam Session, you can catch a replay on Stock Market TV.

~ @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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