Riot Blockchain Options Traders Place Big Bets As Bitcoin Soars

Riot Blockchain, Inc RIOT gapped up and opened at $37.09 Monday morning after Bitcoin BTC/USD busted through the $45,000 level and cleared the 200-day simple moving average in the earning morning hours.

The Bitcoin mining company produced a total of 1,167 in the first half of 2021, which represents a 130% increase from the same period the year prior.

Minutes after the markets opened, bullish options traders began to hammer Riot call contracts and together purchased over $1.82 million worth. One trader paid $99,858 for 979 out-the-money call contracts and chose a $45 strike price with an expiry for this Friday. For the traders calls to become in-the-money, Riot would need to rally about another 16% higher, although the trader may be planning to sell the contracts before expiry.

See Also: How to Buy Riot Blockchain Inc. Stock Right Now 

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The RIOT Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 9:32 a.m., a trader executed a call sweep near the midpoint of 231 Riot Blockchain options with a strike price of $36 expiring on Aug. 13. The trade represented a $80,850 bullish bet for which the trader paid $3.50 per option contract.
• At 9:39 a.m., a trader executed a call sweep near the ask of 895 Riot Blockchain options with a strike price of $35.50 expiring on Aug. 13. The trade represented a $386,640 bullish bet for which the trader paid $4.32 per option contract.
• At 9:40 a.m., a trader executed a call sweep near the ask of 254 Riot Blockchain options with a strike price of $36 expiring on Aug. 13. The trade represented a $101,600 bullish bet for which the trader paid $4 per option contract.
• At 9:40 a.m., a trader executed a call sweep near the midpoint of 982 Riot Blockchain options with a strike price of $42 expiring on Aug. 13. The trade represented a $173,814 bullish bet for which the trader paid $1.77 per option contract.
• At 9:41 a.m., a trader executed a call sweep near the ask of 894 Riot Blockchain options with a strike price of $35.50 expiring on Aug. 13. The trade represented a $411,240 bullish bet for which the trader paid $4.60 per option contract.
• At 9:43 a.m., a trader executed a call sweep near the ask of 979 Riot Blockchain options with a strike price of $45 expiring on Aug. 13. The trade represented a $99,858 bullish bet for which the trader paid $1.02 per option contract.
• At 9:50 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $38 expiring on Sept. 17. The trade represented a $130,000 bullish bet for which the trader paid $6.50 per option contract.
• At 10:00 a.m., a trader executed a call sweep near the ask of 500 Riot Blockchain options with a strike price of $35.50 expiring on Aug. 13. The trade represented a $210,000 bullish bet for which the trader paid $4.20 per option contract.
• At 10:49 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $40 expiring on Sept. 24. The trade represented a $114,800 bullish bet for which the trader paid $5.74 per option contract.
• At 10:50 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $40 expiring on Sept. 24. The trade represented a $114,000 bullish bet for which the trader paid $5.70 per option contract.

RIOT Price Action: Riot Blockchain was trading up 11% to $38.93 at publication time.