TopOptionAlert
Oct 23, 8:34 PM
$CLSK NOV20 7.50P · still actionable
Zone:
$7.82 to
$7.94
Invalidation: close over
$8.32
Objectives:
$7, then
$6
The math: down 11.2% to the first objective and 23.9% to the second, against 5.6% risk on the invalidation, about 4.3 to 1 reward to risk on the second.
This is a swing put on a stock that is falling apart in public. CleanSpark has lost nearly half its value in a month, and today it printed a fresh low under eight dollars on the kind of volume that says the sellers are not tired yet. Picture a row of dominoes that has been toppling since September, with every small bounce only setting up the next one. The seven dollar fifty put expiring November 20 bets the toppling continues into the seven handle and toward six, and if the stock somehow closes back over today's high at 8.32, the dominoes stopped and so does the trade.
P.S. The next quarterly report lands November 24, four days after these contracts expire, so this trade rides the drift into earnings, not the print itself.
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