To The Moon

$IREN Ltd(IREN)$ securing a $2.8B AI cloud contract and raising 2026 revenue guidance above $4B fundamentally validates its pivot from Bitcoin miner to AI infrastructure operator. With pre-market shares trading up to $41.87 and Implied Volatility (IV) sitting at a massive 143% (98th percentile), the market is pricing in explosive near-term move expectations.

IF YOU ALREADY OWN THE SHARES

If you hold at least 100 shares, the extreme volatility makes this an ideal environment to consider a covered call (selling the right for someone else to buy your shares at a set price to collect income). With the stock approaching resistance at $45, selling an out-of-the-money call option allows you to harvest elevated option premiums while setting a disciplined profit target. If the stock stays below your strike price, you keep the cash premium to cushion any pullbacks; if it rallies past your strike, you lock in profits on your shares.

IF YOU WANT TO OWN THE SHARES

If you want to build a long position but fear chasing the stock at high valuations, consider a cash-secured put (promising to buy shares at a lower target price while setting aside cash to cover the purchase). By choosing a strike price near support around $35, you collect substantial income generated by the 143% IV setup. If the stock dips below $35, you get assigned the stock at a net discount after factoring in the premium received; if it stays above $35, you simply keep the cash income.

IF YOU JUST WANT TO TRADED FOR PROFIT

For traders looking to capitalize on price movement without holding the underlying stock, high IV creates an environment ripe for IV crush (the rapid drop in option prices after a major news catalyst passes). Buying outright calls at a 98% IV percentile carries heavy overpayment risk. Instead, a bull put spread (selling a higher-strike put and buying a lower-strike put to generate a net credit) allows you to profit from neutral-to-bullish price action above support while capturing high volatility decay with strictly limited risk.

EDUCATIONAL DISCLAIMER

This post is for educational and informational purposes only and does not constitute financial advice. Options involve significant risk and are not suitable for all investors. Always conduct your own research and assess your personal risk tolerance before trading.