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:
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!