Traders Prepare For Bitcoin Breakout Through Riot Blockchain Options

Options Traders are preparing for a big Bitcoin BTC/USD bull break with Riot Blockchain, Inc RIOT call contracts.

The proof-of-work Bitcoin mining stock can be affected by Bitcoin’s wild price fluctuations, often rising when Bitcoin rallies and trading down in sympathy when Bitcoin falls.

Bitcoin was trading higher Friday, still within the bull flag formation Benzinga called out, and attempting to regain the $48,817 level. If Bitcoin can regain the level as support, it has room to move up toward the important psychological level of $50,000.

Riot is attempting to break up bullishly from its own bull flag pattern. The stock created the pole of the pattern when it soared 25% between Aug. 19 and Aug. 25, and the flag formation occurred when Riot consolidated Thursday and Friday.

Options traders believe there’s massive upside ahead for Riot’s stock and together purchased over $2.43 million in bullish call contracts. Most of the options purchased were leaps and had a whopping $115 strike price set to expire Jan. 20, 2023.

See Also: Bitcoin Headed For $75,000, Analyst Says

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The RIOT Trades: Below is a look at the notable options alerts courtesy of Benzinga Pro:

• At 9:34 a.m., a trader executed a call sweep near the ask of 245 Riot Blockchain options with a strike price of $32 expiring on Aug. 27. The trade represented a $115,150 bullish bet for which the trader paid $4.70 per option contract.
• At 9:35 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $36 expiring on Sept. 17. The trade represented a $74,000 bullish bet for which the trader paid $3.70 per option contract.
• At 9:55 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $137,000 bullish bet for which the trader paid $6.85 per option contract.
• At 10:21 a.m., a trader executed a call sweep near the ask of 266 Riot Blockchain options with a strike price of $70 expiring on Jan. 20, 2023. The trade represented a $308,560 bullish bet for which the trader paid $11.60 per option contract.
• At 10:28 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $151,000 bullish bet for which the trader paid $7.55 per option contract.
• At 10:28 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $151,000 bullish bet for which the trader paid $7.55 per option contract.
• At 10:28 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $151,000 bullish bet for which the trader paid $7.55 per option contract.
• At 10:33 a.m., a trader executed a call sweep near the ask of 223 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $180,575 bullish bet for which the trader paid $7.75 per option contract.
• At 10:34 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $158,000 bullish bet for which the trader paid $7.90 per option contract.
• At 10:34 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $158,000 bullish bet for which the trader paid $7.90 per option contract.
• At 10:35 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $158,000 bullish bet for which the trader paid $7.90 per option contract.
• At 10:43 a.m., a trader executed a call sweep near the ask of 417 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $333,600 bullish bet for which the trader paid $8 per option contract.
• At 10:43 a.m., a trader executed a call sweep near the ask of 223 Riot Blockchain options with a strike price of $115 expiring on Jan. 20, 2023. The trade represented a $178,846 bullish bet for which the trader paid $8.02 per option contract.
• At 11:16 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $41 expiring on Sept. 3. The trade represented a $26,200 bullish bet for which the trader paid $1.31 per option contract.
• At 11:46 a.m., a trader executed a call sweep near the ask of 200 Riot Blockchain options with a strike price of $35 expiring on Sept. 3. The trade represented a $90,000 bullish bet for which the trader paid $4.50 per option contract.
• At 12:35 p.m., a trader executed a call sweep near the ask of 516 Riot Blockchain options with a strike price of $40 expiring on Sept. 3. The trade represented a $64,500 bullish bet for which the trader paid $1.25 per option contract.

RIOT Price Action: Shares of Riot Blockchain were trading up 6.39% at $38.60 Friday afternoon.