Options Corner: COIN

Core Insights - The correlation between Coinbase and Bitcoin is nearly perfect, indicating they move in tandem [2] - Both Coinbase and Bitcoin have experienced a significant slump recently, reflecting broader weakness in the financial sector [3] - Current price levels for Coinbase are at notable lows, with intraday lows and closing lows around 143 to 153 [4] Price Trends - The trend for Coinbase is characterized by a downward sloping channel, which has become steeper and more severe [4] - Short-term moving averages indicate potential resistance levels, with the 5-day EMA at approximately 162 and the monthly EMA at around 193 [5] - The Relative Strength Index (RSI) is pointing lower, indicating an oversold condition [5] Volume and Trading Strategy - Significant volume nodes are identified between 163 to 174 and another between 200 to 215, which could act as resistance levels [6] - A bullish trade strategy is proposed, targeting a breakout above the 170 level, with an expected move of plus or minus 21.1% for the March expiration [8] - The suggested trade involves a call butterfly strategy with a maximum loss of 280 and a potential maximum profit of 1,220 if the price expires at the short strike [9]