CLSK Bounce

BY LICIA LESLIE 

April 21, 2024

Hi Shoppers,

 

I wrote about options on the new Bitcoin ETFs and that I was bullish Bitcoin (Ticker: BTCUSD), you can read it here.

 

I am also bullish CleanSpark (Ticker: CLSK), a Bitcoin mining company.

 

Here’s the chart:

It has bounced off the lower end of the range it has been trading in since Feb12.

 

Friday it traded up against the convergence of the 21 and 50 day simple moving averages causing resistance.

 

Once it breaks out over that at $17.55, the stock has room to run to $20.86 and then $23.50.

 

Looking at the calls, I like the May03 expiration:

As you can see the 17.00 calls, which are just in the money, have the lowest implied volatility.

 

I am looking to buy calls once the stock trades over $17.55, so the 17.50 calls should come down in implied vol once the stock trades higher.

 

Use a close below $16.00 as your stop loss.

 

Trade Review


The S&P 500 (Ticker: SPX) traded and closed below the gap support I talked about. I see some support at $4912 and $4900.

 

Thanks for Reading … See You Next Tuesday,

Licia Leslie

Licia Leslie

Head of Technical Analysis

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Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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