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Some interesting flow is hitting the scanners ahead of tomorrow’s earnings, but here’s the kicker — the best setup may be the correlated play nobody’s watching, so let’s discuss [tap to join us for Stonkamania]!
Let me be blunt about something that needs to be said…
Crypto mining stocks are heading down the same dead-end path as cannabis stocks.
I don’t say this lightly. I’ve been watching the price action, and the writing is all over the wall. These companies aren’t going to $0 and they’ll still exist as public entities, but the trading opportunity?
That’s what’s dying right in front of us.
The only reason I even touched CleanSpark (CLSK) earlier in the week was because we’ve seen flow on it before that actually worked. But that’s where it ends for me.
I don’t have anything good to say about the crypto names as a whole. I’m not calling them $0, but the trajectory feels close enough that the distinction doesn’t matter.
They’re just not for me.
The Cannabis Playbook Is Repeating Itself
Here’s what I think happens next with these crypto mining stocks: They end up exactly like the pot stocks. Companies like Tilray (TLRY) and Canopy Growth (CGC) all the others that are still technically public but offer zero real trading opportunities.
Canopy Growth used to be the biggest pot stock around and now it’s trading for under $1 a share while TLRY’s barely above $4 a share.
Once these stocks go dead, they’re dead, they’re zombie companies. It’s the same pattern we watched unfold in the cannabis boom — tons of hype, massive runups then a long, painful fade into irrelevance.
We’re seeing that same arc playing out again.
They’ll stay listed because CEOs and management teams need to finance operations and access public money. But the actual trade? Dead. The momentum? Gone. The opportunity? Non-existent.
When I see all the crypto names dropping together — and trust me, they all drop together — it just reinforces why I’m staying away. This isn’t a sector I want to be in, and I don’t have anything good to say about it.
Why I’m Not Touching This Space
I’m not trying to be negative just for the sake of being negative. I’m being realistic about what works and what doesn’t. Crypto stocks simply aren’t for me, and I think most traders would be better off avoiding them entirely.
The pattern is clear…
Once these names make their big move, they’re done. You might catch a small bounce here and there based on unusual options activity, but building any kind of consistent strategy around them is a waste of time and capital.
Save yourself the headache and look elsewhere. There are plenty of legitimate setups in other sectors that actually offer real edge. Crypto mining stocks are becoming zombie companies — still listed, still trading, but offering nothing worth risking your money on.
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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