Skip to main content

Market Overview

Coinbase Options Traders Plan To Bank On Earnings

Share:
Coinbase Options Traders Plan To Bank On Earnings

Coinbase Global Inc (NASDAQ: COIN) hit a new low, below its public listing price, of $250.51 on May 6 but bulls bought the dip.

Now it looks as though bulls are anticipating a positive reaction to an earnings beat and bet over $1.6 million shares of Coinbase are headed higher. Coinbase is set to print its earnings on May 13 after the closing bell.

Cathie Wood also thinks there’s money to be made in Coinbase and on Monday sold about $11.1 million worth of Apple Inc (NASDAQ: AAPL) shares, through her ARK Innovation ETF (NYSE: ARKF), and purchased about $9.77 million worth of Coinbase’s stock.

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

  • At 10:12 a.m., Tuesday a trader executed a call sweep, near the mid-point, of 788 Coinbase options with a $295 strike price expiring on May 14. The trade represented a $556,328 bullish bet for which the trader paid $7.06 per option contract.
  • At 10:12 a.m., a trader executed a call sweep, near the ask, of 237 Coinbase options with a $295 strike price expiring on May 14. The trade represented a $165,900 bullish bet for which the trader paid $7.00 per option contract.
  • At 12:05 p.m., a trader executed a call sweep, near the ask, of 600 Coinbase options with a $340 strike price expiring on May 21. The trade represented a $282,000 bullish bet for which the trader paid $4.70 per option contract.
  • At 12:40 p.m., a trader executed a call sweep, near the ask, of 420 Coinbase options with a $295 strike price expiring on May 14. The trade represented a $596,400 bullish bet for which the trader paid $14.20 per option contract.

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 option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

See also: How to Buy Coinbase IPO (COIN) Stock

These types of call 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.

COIN Price Action: Shares of Coinbase closed up 3.2% to $303.

 

Related Articles (COIN)

View Comments and Join the Discussion!

Posted-In: Earnings News Options Markets Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com