Yo Pit Crazies,

Blackrock Inc (Ticker: BLK) is one of the biggest and most politically active money managers in the world. So when they get into something, it pays to take notice. 

This time, they’re getting into Bitcoin.

If they’re going to put money into Bitcoin, they’re going to put their substantial lobbying prowess behind it as well.

3 month chart on COIN with volatilities on the bottom

That might mean something for Coinbase Inc (Ticker: COIN).

The Blackrock News Led to a Big Pop in COIN

After multiple exchange failures like Mt Gox, FTX, and gosh knows who else, Bitcoin and its bulls have had a hard run of late. COIN had a solid 7% rally on the news,  suggesting it might break its torpor of late.

As you can see from the vol chart above, options are pretty expensive.  So this isn’t really a strangle buying opportunity, but there could be a decent floor under the stock.

I think a diagonal put spread could work selling something close to the money and buying something farther out of the money. This is a strategy we cover in OP Mentoring when the conditions are right.

COIN is not a moonshot like it used to be but not going to 0 anymore is still a trade. And it could be the last Bitcoin exchange standing until BLK decides to become or buy them.

To Your Trading Success,

AG