I didn’t know the symbol RIOT even existed until about a month ago when I noticed The Director was making amazing (virtual) profits with his RIOT calls. So I started following it.
I did a couple of premium posts last week about buying puts on this symbol (or going short). This was an insane idea, of course, because RIOT is joined at the hip to Bitcoin. As I wrote on my January 7th premium post, “Daring to question or challenge the ceaseless rise of crypto is a fool’s errand, but I’ll make that trip right now by way of the equity symbol RIOT. “
I followed that post with another premium post only hours later, stating that “RIOT should peak a little over 30.” and noting of Bitcoin, “we’re starting to reach the crack-up stage” and “I believe any sustained weakness is going to create a swift sense of panic.” This is the chart of RIOT I provided at the time:
Based on the measurement tool, we got pretty close to that target. I was pleased to see the wheels fall off today. I therefore sold my RIOT puts in my virtual account for a nice profit. To be clear, I think RIOT might have a long, long way more to go down, but I’m trying to claw my way out of the virtual trading hole, so I figured I’d take those RIOT profits and run with it.
As for BTC, it’s done something really interesting: take a look at that Fibonacci Extension line, which is just above $30,000. Today’s low almost exactly nailed it, and BTC is starting to see some strength. We could get a decent bounce here, but (1) I think the highs are in for a while (2) if we break $30,000, I think $20,000 is the next important level, and also the next potential buying opportunity.