Your Turn! Bitcoin!
It's Bitcoin's shorts' turn to get squeezed. This is quite instructive — so what other products out there currently have high short interest?
Speaking of which, I saw a large 100,000-contract bearish block trade a few days ago $IBIT 20281215 20.0 PUT$ , with notional volume of roughly $30+ million. Although it hasn't been closed yet, it's currently down 15%. Fortunately, it's a long-dated put, which is more resistant to downward moves — a near-term put would probably be down 50% by now.
Bullish call block trades are the 39.5 call and 45 call $IBIT 20260925 39.5 CALL$ $IBIT 20261120 45.0 CALL$ .
The inexplicable surge has also attracted many late shorts — they're likely to get squeezed again today, so it's unlikely to fall anytime soon. Related stocks like Coinbase and other crypto plays are all suitable for Sell Put strategies to ride the momentum.
Although it's said you can buy on pullbacks, gold has barely pulled back at all on this run. The September target is now above 430 $GLD 20260911 430.0 CALL$ and below 445 $GLD 20260911 445.0 CALL$.
I've always wondered why biotech stocks have been rallying so strongly in the big AI era. Then yesterday MRNA surged 177%, and I realized it was because they developed a successful cancer vaccine using AI — which certainly gives it every reason to rally.
In theory, both MRNA and $Merck(MRK)$ now have long-term investment value. However, yesterday's surge was partly driven by a short squeeze, and now it's overextended — especially MRNA. Look for a pullback to 120 first.
Next week, MRVL reports alongside NVIDIA. NVIDIA goes without saying — just sell puts. Interestingly, MRVL also offers a Sell Put opportunity $MRVL 20260828 200.0 PUT$ , with the stock expected to trade in the 200–250 range.
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