BY LICIA LESLIE
January 17, 2024
Hi Shoppers,
Bitcoin (TIcker: BTCUSD) has been the quentissential “buy the rumor, sell the news” with the introduction and approval of the new eleven ETFs.
It has stopped selling off and is perhaps ready to bounce from here:
At the moment, BTCUSD is trying to rally and close over my support/resistance level at $43,455.
The action of the last four days could pan out to be a bear trap as it rallies from here.
If it is higher this morning, I will be shopping for calls in Marathon Digital Holdings (Ticker: MARA).
I like the Jan26 expiration:
Buying the 18 calls with an implied volatility of 128.62 and selling the 21 calls for a 133.53 implied volatility puts you in a call vertical spread with edge.
You have edge because you are buying a lower implied vol and selling a higher implied volatility, by five points.
Paying $.90 for a three dollar spread is a nice risk reward set up also.
Be sure to watch for BTCUSD and MARA to be trading higher this morning before hopping in.
Use a close below $16.75 for your stop loss.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain
The harami candle tells us not so fast with that rally.
We may not be going higher.
It negates the direction of the previous day’s large body candle, in this case higher.
My support and resistance levels are the highs and lows of the most recent consolidation of SPY, $467.50 and $477.40.
Today will be interesting.
Thanks for Reading … See You Next Tuesday,