Yo Pit Crazies.

I am sad to say I am reporting a death in the crypto trading community.

Crypto is mort.

No more.

Caput.

Now guess the chart below and I will tell you how and why.

All will be revealed.

Robinhood Getting Bought by a Crypto King

Well, he did not buy all of it, but Crypto big-wig Sam Bankman-Fried purchased a 7.6% stake in Robinhood Inc (Ticker: HOOD) – that’s the chart above – for $648 million.

The fact that a crypto king would buy HOOD essentially for the cash value and get the business for nothing is one of the great trades of 2022.

It’s actually reminiscent of when AOL sold to Time Warner back in the dot-com era. AOL traded its funny-money stock for a real asset and assured AOL founder Steve Case of hall-of-fame status in the Market 3 Card Monty Shuffle.

I think Sam Bank-Fried is doing the same thing while HOOD is in a bad patch. I have been selling the $10 puts in HOOD and I thought I would get the stock $2 above the cash value.

I still might, but when the Crypto King moves into stock trading, that can't be a great sign for crypto.

The Lesson: Only sell puts in stock you want to own. Selling puts near the cash value is not a bad idea.

The Rundown

OP Mentoring

I closed my SPY May 31/VIX June 15 375 put & 27 put closed for a 26% gain.

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The Pro Room is Option Pit’s live access to Mark and myself during trading hours. Our Pro students post trade ideas with Mark and me during the entire trading session. 

Cat scratching at some Ark Funds Inc Innovation and Tech ETF (Ticker: ARKK) gains from Nitro Trader.

To Your Trading Success,

AG