Schaeffer's Top Stock Picks for '25

2 Crypto Stocks Sitting Out the Sell-Off

RIOT and MARA stocks are higher with bitcoin

May 13, 2019 at 2:00 PM
facebook X logo linkedin


While most stocks are swimming in red ink due to the escalating U.S.-China tariff war, blockchain-related stocks are bucking the trend to trade higher. More specifically, a big rebound in bitcoin has lifted penny stocks Marathon Patent Group Inc (NASDAQ:MARA) and Riot Blockchain Inc (NASDAQ:RIOT), and option bulls are speculating on even more upside for the shares.

Marathon Patent stock was last seen up 23.9% at $3.62. The shares have stair-stepped higher since bottoming at $1.32 in late January, doubling in that time frame. More recently, MARA has struggled to conquer the $3.75-$4 region, which has put a lid on rally attempts since mid-April.

MARA stock chart may 13

So far today, the equity has seen over 900 call options change hands -- eight times its average intraday call volume. That's compared to fewer than 50 MARA puts exchanged so far.

Most active are the June and December 5 calls, which have both seen suspected buy-to-open activity. By purchasing the calls to open, the buyers expect MARA stock to skyrocket north of $5 by the options' respective expiration dates of June 21 and Dec. 20.

With earnings out of the way -- Marathon Patent reported last Friday, May 10 -- now is an opportune time to scoop up near-term MARA options at a relative discount. The security's Schaeffer's Volatility Index (SVI) landed at 164% this morning, in just the 16th percentile of its annual range, pointing to relatively modest volatility expectations being priced into short-term MARA options contracts.

Meanwhile, Riot Blockchain stock was last seen 18.3% higher at $4.78. RIOT shares more than quadrupled from their Dec. 26 low of $1.29 to their recent peak of $6.14 on April 23. However, after that year-to-date high, RIOT backpedaled to test -- and bounce off -- support from its 200-day moving average.

RIOT stock chart may 13

RIOT has seen roughly 12,000 calls change hands today -- more than double the norm, and almost triple the number of puts exchanged. Most active is the May 5 call, where more than 3,890 contracts have traded. It looks like buyers are picking up the calls to open, with hopes of RIOT shares toppling $5 by the close this Friday, May 17, when front-month options expire.

However, some of that call buying could be attributable to shorts seeking a near-term hedge. Short interest on RIOT accounts for nearly 29% of the stock's total available float.
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));