Trade Alert - (COIN) May 19, 2021

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Tech Alert - Coinbase Global, Inc. (COIN) – BUY

BUY Coinbase Global, Inc. (COIN) June 2021 $170-$175 in-the-money vertical BULL call spread at $4.35

Opening Trade

5-19-2021

expiration date: June 18, 2021

Portfolio weighting: 10%

Number of Contracts = 22 contracts

This is a short-term bullish position on cryptocurrency exchange equity stock Coinbase Global, Inc. (COIN).

This is a trade that the underlying stock of COIN will stay above the strike price of $175 in the next 30 days.

The price of bitcoin hit $30,000 this morning signaling the froth is coming out of the equity market.

The heightened volatility means that we are able to initiate a very deep in-the-money call spread with a lot of cushion.

This is worth a trade and pricing is very volatile. If you cannot get filled, roll up the strikes $5.

Traders not able to stomach risk, avoid this one. Chinese regulatory agencies effectively banned any business dealing with cryptocurrency.

This ties into Tesla banning the sale of car with bitcoin to avoid clashing with Chinese regulators as they try to open their bitcoin business.

What is COIN?

Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy. The company provides primary financial account for the cryptoeconomy, a platform to invest, store, spend, earn, and use crypto assets; an online marketplace for hedge funds, money managers, and corporations.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Here are the specific trades you need to execute this position:

Buy 22 June 2021 (COIN) $170 calls at………….………$53.95

Sell short 22 June 2021 (COIN) $175 calls at………….$58.30

Net Cost:……………………..……...............….……..…….....$4.35

Potential Profit: $5 - $4.35 = $.65

(22 X 100 X $.65) = $1,430 or 14.94% in 30days

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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