Coinbase Attracts $222M Call Option Trades as Stock Rises a Fourth Day
Coinbase saw almost $222 million in combined call option block trades as the stock rallies a fourth straight session, amid increased investor appetite for Bitcoin.
The stock gained 2.5% to $257.61 at 3:56 p.m. in New York, after touching an intra-day high of $263.80. The provider of crypto-powered technologies including self0-custody wallets and trading platform saw it shares rise even as the $S&P 500 Index (.SPX.US)$ and the $NASDAQ 100 Index (.NDX.US)$ struggled to eke out a gain.
The biggest of those block trades was one that was posted at 12:41:52 p.m. Thursday in New York, data compiled by moomoo showed. In that trade, the seller stands to collect a $100.17 million premium for writing call options that give the holder the right to buy 2.569 million $Coinbase (COIN.US)$ shares at $230 each by July 19.
At that exact time, right down to the second, another block trade was posted. In that trade, the seller would collect $61.7 million for writing call options that give the holder the right to sell the same number of Coinbase shares for $260 each. Those call options have the same expiration date.
Earlier Thursday, Goldman Sachs cut its price target on the stock to $255, from $295 and maintained its neutral rating, Benzinga reported.
The stock has climbed more than 400% in the past 12 months after regulators approved spot Bitcoin exchange traded funds, spurring demand for the cryptocurrency.
On Tuesday, the ETFs had a combined net inflow of $886.6 million, the biggest since March 12, data from CoinGlass showed. Those funds now have a combined market capital of $63.7 billion, according to the data.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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Heavyguidance : Would you be able to explain, if the call option stats are from writer perspective and majority of the sentiment is bearish, why would the price of coin rise? Confused![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Mashod bhuiyan : what is it
Mashod bhuiyan : how we can make profit with this platform, Explain me and what I do now for this opportunity
Luzi Ann Santos OP Heavyguidance : The stats are from the new moomoo PC app. The sentiment represents that of the seller at the time of the trade. The price of Coinbase has been going up as demand for bitcoin and fund inflows into ETFs soar. Coinbase is the custodian to eight bitcoin spot ETFs, so the company also benefits.
Luzi Ann Santos OP Mashod bhuiyan : I’m afraid I’m not allowed under regulatory rules to provide you with any investment advice. If you need to learn more about options or how to navigate the options chain, I can send you links to those.
Master Corgi Luzi Ann Santos OP : You work for Moomoo?