Hi Shoppers,

Is blockchain back in favor?

It’s starting to look like it.

I have been watching Riot Blockchain (Ticker: RIOT) and Marathon Digital Holdings (Ticker: MARA) stock charts waiting for them to break out of the range they’ve been trading in.

Both charts are very similar:

MARA

RIOT

They each have two days of trading above the resistance line. The rule of thumb is three closes above for confirmation.

Believe in MARA-cles

If MARA opens and trades higher, I will buy the June 25 30.50-strike calls, which have some volume and decent market widths and an implied volatility of 108.21. 

I will sell the June 25 35.50-strike calls with an implied vol of 113.96.

I will pay up to $1.55 for this 10-point spread with eleven days until expiration.

If the spread trades down to the $1 area, I will take my losses. I will begin to take profits at $2.50 and higher.

I Predict a RIOT

In RIOT, if it opens and trades higher, I will buy the June 25 35.50-strike calls with an implied volatility of 112.08 and sell the 41-strike calls with a 118.19 implied vol.

I will pay up to $1.50 for this 5.50 point spread with 11 days until expiration.

I will take my losses at the $.95-$1 area and begin profit taking at $2.50 and above.

If you move into these positions, keep your eye on the cryptos, as they tend to follow.

Thanks for Reading … See You Next Tuesday!

Licia Leslie