A short guide to successful cryptocurrency and stock trading for beginners.
Less than half an hour before U.S. regulators cracked down on a key cryptocurrency exchange, a mysterious options trader placed a short order (https://www.bloomberg.com/news/articles/2023-06-07/mystery-bet-before-sec-crypto-crackdown-may-mint-trader-millions) that is a put option against Coinbase Global Inc. that earned him millions of dollars.
At 10:36 a.m. Monday, a block of $4806 Coinbase $50 contracts expiring Friday hit the put when the stock was worth $61.77. About 24 minutes later, the Securities and Exchange Commission announced it was suing Binance Holdings Ltd, sparking a sell-off across the crypto industry.
By noon in New York City, Coinbase shares were down nearly 12%, and options that had been bought by an unnamed trader at 18 cents each became worth as much as $1 - a gain of nearly 460% from selling at the peak.
But that's not all. The already lucrative order became even more lucrative on Tuesday after the SEC again announced a separate lawsuit against Coinbase itself.
Shares of the cryptocurrency exchange fell as much as 21% at the opening of trading, bringing the value of put options to $5.65 each. This means that an unknown trader was able to turn an investment of $86,500, the amount spent to buy the options, into an unexpected $2.6 million in revenue.
The bet against Coinbase was made minutes before the SEC lawsuit against Binance
But that's not all of the mysterious trader's unprecedented luck and fortune. Just a few days ago, before his "success" with Coinbase stock, the mystery trader made a large bullish bet on pipeline operator Equitrans Midstream Corp.
And just a couple of hours later, in a published contract (agreement) in the text of the White House debt ceiling bill with Republican traitor in the House of Representatives Kevin McCarthy, language supporting the Equitrans Midstream Corp project suddenly appeared, raising questions about how this fortunate trader managed to learn the details of the secret bill.
Who is this mysterious trader, and why is he so lucky? What kind of TA does he use? What if it's Gary Gensler himself, or for example, his nominee?
And then suddenly there is breaking news on Capo WSB's Twitter feed (https://twitter.com/Capo_WSB/status/1666816037407571969?s=20)
that Coinbase has evidence that Gensler shorted over $2.5 million worth of bitcoin 48 hours ago. Just before the Binance proceedings began.
What a talent this Mr. Gensler is. And these people forbid us to pick our noses.