Trade Alert: Crypto

A pre-earnings trade and a post-earnings trade.

May 06, 2024

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Waiting For The Right Setup

In our Exits post over the weekend, I wrote about using Chartmill’s Setup Rating, a measure of technical consolidation, to time entries into post-earnings trades;

In the past, I’ve placed post-earnings trades in situations like this, where a stock is down despite solid earnings (also in some cases where there was an earnings miss but I was still bullish on the stock. One difference I’m doing now is waiting for some price consolidation before placing post-earnings trades. Specifically, I set an alert on Chartmill for when the Setup Rating on the stock hits 7 (out of 10), while the overall Technical Rating is at least a 6. That increases the chance we’re not catching a falling knife. Then we can jump in and place a longer-term bullish trade. I plan to do that with COIN, as I am still bullish on it.

Today, Coinbase (COIN 0.00%↑) has a set-up rating of 7, so I placed a bullish bet on it expiring after its next earnings release.

Looking For An Upside Target

To figure out what kind of upside to aim for, I looked at the expected move for COIN going out to September 20th (the first options expiration date after it releases earnings again in August). I had ChatGPT run the numbers for me based on my inputs:

A move of nearly 38% seems possible by then, but I decided to aim for one of about 20% instead, to be less aggressive. Today’s trade will give us a maximum gain of about 200% if that happens.

Our second trade today is on a company releasing earnings this week. It’s flat on a negative headline this week, but I am still bullish on it. I currently hold its underlying shares as part of our core strategy, and I also have a bullish options trade on it from last month.

Trade Alert: Crypto

Portfolio Armor

April 9, 2024

Two Picks & Shovels Plays On Crypto Both of these companies are making money from crypto now, and both have the potential to continue to make money from it if crypto corrects, as they benefit from trading volumes. Both are scheduled to release earnings next month, but their stock charts are showing some consolidation here (as indicated by

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I placed another earnings options trade on it today, after calculating an updated expected move on it. This trade has a maximum upside of about 300%.

Details below.

Bullish Trade #1

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