A breakout is brewing. Not happening. Not confirmed. Brewing. Like a pot of coffee you forgot about that's now just burnt sludge at the bottom of the carafe.
Tony Zhang of OptionsPlay wants you to know he's got a trade idea for a bitcoin-linked stock. He breaks down how he's trading this name. This name. Can't say which one in the headline because that would require committing to something specific. Might as well say "Tony Zhang of OptionsPlay breaks down how he's trading a thing that exists somewhere in the market."
The stock is linked to bitcoin. Linked. Like they're Facebook friends. Like they follow each other on Instagram. The correlation probably holds until it doesn't, at which point Tony Zhang will have a new video explaining how he's trading the next brewing breakout.
OptionsPlay is a real company that sells options strategies to people who don't understand options. Tony Zhang works there. His job is to look at a chart with some lines on it and say words like "brewing" and "breakout" and "how to trade it" into a camera. Retail traders watch these videos the same way medieval peasants watched puppet shows. Same level of financial literacy. Same outcome.
The bitcoin-linked stock could be any of them. Coinbase. MicroStrategy. Riot Platforms. Marathon Digital. Doesn't matter. They all move the same direction as bitcoin except when they don't, and when they don't, they move twice as hard in the wrong direction because they're levered to both bitcoin's volatility and their own operational incompetence.
Tony Zhang has a strategy. He's sharing it. For free. Which means either he's already in the position and needs exit liquidity, or the strategy is worth exactly what you're paying for it.
The breakout is brewing, and somewhere Tony Zhang is already filming tomorrow's video about how he's trading the breakdown.
Photo by André François McKenzie on Unsplash
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