RIOT, MARA: A Look At Crucial Trading Levels Of These Trending Bitcoin-Linked Stocks

As economic data releases have started indicating a slowdown in the economy and the recent banking crisis eroded the confidence of depositors and investors to a great extent, cryptocurrencies seem to have emerged as investor favorites.

Bitcoin BTC/USD has gained over 45% in the last month while Ethereum ETH/USD has risen over 29% in the period. As the asset gains more traction, stocks linked to the sector are also recording significant gains. Here's a look at two of the trending stocks and some crucial trading levels factored in by the options market for the week:

1. Riot Platforms Inc RIOT: Shares of the Bitcoin-mining company have risen over 69% in the last month while its year-to-date returns stand at over 213%. The stock closed at $10.58 on Monday. Options expiring on Friday indicate relatively higher open interest build-up at the $12 level amongst out-of-the-money Call options. What is noteworthy is the fact that a significant open interest build-up can be seen at the $9.5 and $10 Call strikes, which are in the money at the time of writing.

Since Riot shares closed over 15% on Monday and gained another 4% in extended trading, the possibility of a correction does exist — a notion supported by the options data. On the downside, an absence of a significant build-up on any particular out-of-the-money Put strike could be reflecting a lack of conviction about potential support.

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2. Marathon Digital Holdings Inc MARA: Shares of Marathon closed over 14% higher on Monday at $9.10 and gained another 4% in extended trading. Options data shows significant open interest build-up between the $8.5 and $10 Call strikes, indicating the levels could provide some resistance if the trend continues. On the downside, the $7 to $8 zone is expected to provide some support.

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