Coinbase: The levels I'm watching
$COIN Coinbase has always been one of my favourite stocks to do the wheel strategy because of the high IV and juicy premium.
Was heavy in this counter (doing wheel only) in 2022-2024 and had a good run back then. Now I'm seeing good value in this again so just sharing the levels I'm watching and stratgey I'm implementing, not financial advice.
$160-$180: Support zone. Most transactions happened in this band over the last 9 months. Weak hands exit, whales come in to grab. Boring Zone because not much movement and excitement. Best for the "wheelers".
$145-$160: Liquidity grab zone. Volatile movements whenever it drops below this. Matches the 2025 April low and 2024 September low. Bounced off 4 times in total over the last 3 years. Reverts to above support zone quickly and looks like "planned" dip to sweep up more shares.
$180-$200: The higher boring zone with slightly less volume than the main support zone. Slightly bigger movements coinciding with big news like clarity act etc. Fun at times but can puke blood because it opens near 180 to close up most of the time or open high near 200 to close lower. Gets confusing for everybody because movements are big yet directionless.
$200-$220: my own term "waiting to shoot zone". It touched this zone less than 20 days over the past 9 months and each time being beaten down quickly. BTC hasn't bottom at that time, whales haven't accumulated enough after the big drop. In the mind "not gonna let it run until you guys are out and we accumulate enough".
My plan: Continue with wheel strategy selling puts below $180. My calls were stagger previously between $175-$190 hence forming a "covered strangle". The low levels of covered calls are on purpose earlier because I'm not expecting a bull run on this counter that early. Not before the 3Q2026 earnings.
Once it breaks 200 with a big green candle and only if it coincides with an announcement that changes the earnings fundamentally, then i will stop selling calls to let the stock run (or even buy leaps). All personal opinion and strategy once again, not financial advice.
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- LostNoob·10-01 09:14Is that a bull flag forming again?1Report