Mystery Bet Before SEC Crypto Crackdown May Mint Trader Millions; Block of Coinbase put options traded minutes before SEC filing; Trade could have minted a windfall of $2.6 million in 24 hours Matt Turner and David Marino - Bloomberg Less than a half hour before US regulators cracked down on a key crypto exchange, an options trader made a short-term bet against Coinbase Global Inc. that may have netted them millions of dollars. At 10:36 a.m. on Monday, a block of 4,806 contracts of Coinbase $50 puts expiring Friday hit the tape, when the stock was at $61.77. /jlne.ws/43MZjOP
The funny thing, is I had just shorted the 55-PUT before that... and I knew the SEC was coming. Now I'm ITM but have all the way until almost 2026 to recover. As long as CoinBase still exists by then, I'm not too worried. It's too bad all the paper-hands mostly left the scene after FTX imploded. I would have loved to see another explosion in vol here. Oh well, can't have your cake and eat it too I suppose....
Now it at $51, did the trade make some cash? I had 10 short puts expiring tomorrow, a cash cow for me. But the risk I think it is too high now, don’t want to touch it.