We were already long MARA and RIOT calls with an 11/22 expiration. There is a juicy short interest in all of these names.
We liked MARA so much that we wanted to double down on it and position ourselves for a big catch-up move.
We got it today, with MARA up over 30%. We sold half our position in both calls at close to a triple. We also sold half our CLSK for more than a double, and those calls closed at $3 today.
Now, we are left with a free ride on all four of our BTC miner positions as Bitcoin is trading at new all-time highs. Our exposure also gives us some flexibility in terms of exiting the remaining calls because they have a mix of expirations. We’ll look to sell the shorter-dated ones first.
As for Block $SQ, our timing on Friday couldn't have been better.
This was the ideal “post-earnings” shakeout entry—and we stepped in right as the stock started to reverse higher.
By buying this short-term weakness, we nailed an optimal entry, and with just one day of follow-through, SQ is a multi-bagger today.
We paid $1.80 for the 12/20 $77.50 calls, and they are now sitting pretty at $8.80—a roughly 5x return in just one day.
We sold half today—effectively bringing our cost basis to zero.
Now we get to let the remaining calls ride, knowing this will be a profitable trade no matter what happens to SQ from here.
This is the beauty of our Breakout Multiplier Strategy.
The remaining calls can go to zero, and we still win big on this trade. Imagine you bought two calls for a combined total of $3.60 and just sold one at $8.80. Under this scenario, the trade still nets a 144% gain in the event the 2nd call goes to zero.
The other potential-- and, in my opinion, higher probability outcome is that SQ screams higher from here. Let’s assume we get another 20% by expiration. That would put SQ around $100/sh, and our calls would be worth $22.50 at a minimum. That would give us at least a 12x return on the remainder.
This strategy is all about putting ourselves in a position to either win big or lose nothing. The goal is to secure profits by selling at least a double while leaving the potential for even more upside with minimal risk.
Due to all the doubles we’ve sold since last week, our portfolio is stacked with “free ride” positions right now.
I’m confident we’re going to hit at least a few home runs on these in the coming days and weeks.
And with participation expanding to the broader market, I have a feeling we’re going to have even better opportunities to achieve big gains in the future.
