As you all know, BlackRock has been trying to launch a bitcoin ETF and whether we will have a bitcoin EFT is no longer “if” but “when” inflection point. With this, not only investors are accumulating bitcoin, but a bunch of fund managers are racing to create their own EFT’s.
As you can expect, bitcoin price ($BTC) just went through the roof along with $COIN. And it will continue to march higher.
What’s being overlooked is the entire mining market. $RIOT and $MARA were lagging a bit but their prices also soared. $MARA went up 126.34% in the last 6 months and $RIOT went up 208.03% during the same period. These are household names but a lesser known $HUT (up 132.07%) is a bit of a hidden gem. Why? Option pricing is very attractive.
Here is an example
- $RIOT trading now at $19.54. July 21, 2023 call option for $20.50 (about 5% above) is $1.42/$1.45 (bid/ask). That’s about 7%
- $MARA trading now at $18.65. July 21, 2023 call option for $19.50 (about 5% above) is $1.08/$1.11 (bid/ask). That’s about 6%
- $HUT trading now at $4.26. July 21, 2023 call option for $4.50 (about 5% above) is $0.21/$0.23 (bid/ask). That’s about 5%
Why does this matter? With a lower base, you can get a lot more call option contracts and you can a lot more. The same way my $0.03 call options turned into $1.83 and I made a boat-load.
Do your math. Do some digging. And DD as well. Either way, you will reap so much profit riding this bitcoin wave but need to play the options if you want to get rich quickly.