Positive - Coinbase stock benefits from bullish cryptocurrency market and positive political developments

From Nasdaq
July 16, 2024 3:15:00 pm:

The cryptocurrency market is seeing a positive trend, especially for companies like Coinbase Global (COIN), a top cryptocurrency exchange. Political activities could benefit Bitcoin in the long run, with Trump’s Vice President pick being a pro-crypto advocate. Coinbase stock is a great way to gain exposure to Bitcoin, offering the ability to trade options.

Bitcoin has shown significant momentum this year, rising over 50% YTD. The recent rally has seen the price of Bitcoin increase by more than 13% in the last three days. If it can breakout above $72,000, it may reach new all-time highs near $100,000.

Coinbase has been performing well, forming bull flags and breaking higher. The stock is approaching resistance at $247, and a breakout could lead to new YTD highs. A tactical options trade on COIN could be a strategic move to take advantage of these bullish forces in the cryptocurrency market.

When investing in options, a simple yet effective strategy is to buy 30-delta calls (puts). This approach allows for risk management and potentially high returns. A target price of $280 for COIN could result in a return of approximately 141% within a short holding period. Managing risks within a trade is crucial for fitting it into a portfolio effectively.

The confluence of bullish factors such as Bitcoin’s momentum, positive political developments, and Coinbase’s technical strength presents a compelling opportunity for investors in the cryptocurrency market. Considering Coinbase’s Zacks Rank #2 (Buy) rating, there is added confidence in the potential success of the trade.

Read more at Nasdaq: Coinbase Options Trade: A Tactical Approach for Investors