Coinbase Stock Slips After Goldman Sachs Downgrade

COIN has had a hard time since the crypto landslide

Deputy Editor
Jun 27, 2022 at 10:30 AM
facebook twitter linkedin


Coinbase Global Inc (NASDAQ:COIN) is down 7.4% at $58.11 at last glance, after Goldman Sachs downgraded the stock to "sell" from neutral," with a price-target cut to $45 from $70. The analyst cited current crypto asset levels and trading volumes, and though the company announced earlier this month that it would cut 18% of its workforce, the firm believes further job cuts are needed for cost reduction. 

The recent crypto fall-out hasn't been easy on COIN, and it has been moving off a mid-May record low of $40.83. The stock's 20-day moving average has provided pressure as well. 

However, an unwinding of pessimism could provide tailwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), COIN sports a 50-day put/call volume ratio of 1.87 that stands higher than all other readings from the past year. This means puts have been getting picked up at a much quicker-than-usual clip over the past 10 weeks. Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.20 ranks higher than 96% of readings from the past 12 months. 

It's also worth noting that short interest has skyrocketed over the past month, adding 187.5%. Now, the 27.27 million shares sold short account for 16.1% of the stock's available float. 

 

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners