With tax day past, many of you are likely wondering what to do with your refund check. This is a great time to look at options leverage and the power of the trend! Join Keith Harwood, Chief Options Strategist at Option Hotline, as he explains the way he leverages trends with options so you can learn how the professionals take advantage of market movement.
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With Bitcoin booming, keep an eye on mining stocks, we said just last month.
That’s because as Bitcoin pushes higher, the miners typically follow. In fact, with Bitcoin now back above $30,000, it came as no surprise that mining stocks, like Marathon Digital, Riot Platforms, or HIVE Blockchain are perking up.
All as investors eye the end of interest rate hikes from the Federal Reserve.
Now that bitcoin has touched $30,000, a move into the mid- to high-30s will be “likely” if it pushes through with conviction and would “force short speculators to cover and buy instead,” said James Lavish, managing partner at the Bitcoin Opportunity Fund, as quoted by CNBC. “Some investors are trying to get positioned ahead of that.”
Should the Fed pause with interest rates, Bitcoin could take off again – which would be great news for Bitcoin mining stocks and ETFs, such as:
Marathon Digital (MARA)
MARA is on the move with Bitcoin now above $30,000 and running. If BTC can push even higher, MARA will follow. That’s because its revenue depends on the direction of Bitcoin. Where Bitcoin travels, mining stocks like MARA are sure to follow. Now, if MARA can break above resistance around $10, it could potentially run back to $16 a share.
Better, the company just increased its Bitcoin production 21% in March – producing 825 BTC for the month. For all of Q1 2023, it produced 2,195 BTC. MARA also increased its hash rate by 64% in Q1 2023 to 11.5 EH/s as of March 31.
Let’s look at how an options trader decides which of the many different strategies to use. The most important element in trading options is your ‘outlook’ on the particular market you’re about to trade. If your outlook is ‘bullish’, then you’ll need to create a bullish strategy. If it’s ‘bearish’, you’ll need to create a bearish strategy. And of course, if your outlook is ‘neutral’, it’s possible to create an options strategy that will profit if the market remains neutral. If you haven’t got a clue as to the direction of a market, don’t trade.
There are many possibilities, here are just a few:
In addition to the above, we could add…
If you are expecting a big move but you’re not exactly sure if the move will be up or down, then buy straddles, strangles or combinations.
Elite Wall Street trader, Joe Duffy, is allowing a limited group of future-elite investors into his masterful daily trades at thousands of dollars less than what others charge.
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