Coinbase Stock Rallies Amid Crypto Comeback

Italian regulators will also allow Coinbase to continue providing services in the region

Deputy Editor
Jul 18, 2022 at 10:17 AM
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Coinbase Global Inc (NASDAQ:COIN), along with other crypto-related stocks, is rallying this morning, last seen 12.2% higher to trade at $60.35, following an overnight rally in Bitcoin (BTC) and other digital assets. Separately, Italian regulators granted the company approval to provide ongoing crypto services to customers in the region, according to a blog that Coinbase posted on Monday.

On the charts, today's price action is helping COIN break back above a recent ceiling at its 30-day moving average. In addition, Coinbase stock is moving back above the the $60 area, which has weighed for more than a month. The equity still sports a 76.1% year-to-date deficit, however. 

Short- and long-term options traders are overwhelmingly pessimistic on Coinbase stock at the moment. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.37, which stands higher than 96% of readings in its annual range. Mirroring this, COIN's 50-day put/call volume ratio of 1.76 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 92% of readings from the past year. 

A shift in sentiment could be taking place. In the first hour of trading, 27,000 calls and 22,000 puts have crossed the tape, which is nearly double the intraday average. The weekly 7/22 60-strike call is the most popular by far, with new positions being opened at the contract.

Short interest is on the rise, up 19% in the last two reporting periods. The 32.58 million shares sold short account for 19.1% of the stock's available float, and at COIN's average pace of trading it would take more than two days to buy back these bearish bets. 

 

 

 

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