It’s what I told Breakout Multiplier members I was doing during last week’s strategy session.
Today, Coinbase stock rallied 16% after Congress passed the Genius Act, providing regulatory clarity for stablecoins.
The company also announced the launch of a stablecoin payments stack for e-commerce platforms. The news tanked blue-chip payment names, Visa and Mastercard.
And that’s just the disruptive nature of this business.
I think Coinbase is one of the most exciting long-term growth stories out there.
They keep doing all the right things. And now that they finally have a clear and supportive regulatory backdrop, they can execute freely.
But that’s why I own the common stock…
The short-dated calls I’ve been pounding the table about have nothing to do with that.
Instead, that trade has everything to do with bull flags.
We came into the month with a growing list of indexes and stocks resolving short-term continuation patterns to the upside.
In the weeks since, some have seen tremendous follow-through while others have had more lackluster reaction rallies. But very few have failed…. and that’s been great information.
When I see the same pattern play out and complete the same way repeatedly… I act accordingly—I look for that formation, and I buy it—over and over again, for as long as it works.
Here it is in Coinbase:
Why should it do anything different from the other bull flags?
With Bitcoin and speculative growth trading at new highs, why shouldn’t it follow?
Today, COIN followed in a big way as the crypto industry leader blasted higher out of this coil.
I dumped almost all my weekly calls as they ripped deep into the money. I’m holding a small bit for potential Friday fireworks.
It was the best single day of the year for my trading account.
I plan to redeploy the profits into some fresh bull flags over the course of the coming days.
Speaking of bull flags, we discussed another one on last week’s call: CRK. We doubled down on the position Thursday, and the stock is up about 25% since.
We sold a double almost immediately, and as of today, those calls are up about 500%. We were also in some June CRK calls that expire Friday. Those hit 10x today.
