Author: Doug Pless
Professional Trader & SpotGamma Content Contributor
Case Study: A Winning Trade in Coinbase (COIN) with Doug Pless
In this detailed case study, Doug Pless shares how he used SpotGamma tools to find and plan a swing trade on Coinbase between May 28th and June 12th, 2024. During planning, Doug scans for potential candidates using SpotGamma Scanners, researches stocks on Equity Hub, and performs Positional Analysis. After surfacing the name via Scanners, he selects Coinbase due to its volatility and active options market. Equity Hub tools, such as Composite View, Put & Call Impact, Risk Reversal, and Volatility Skew Charts are used to identify key support and resistance levels based on Gamma readings. Doug notes that Coinbase moved higher above a Key Delta Strike and Call Wall on May 28th, with Call Notional Gamma dominant above that level. Based on various technical indicators, Doug develops a bullish thesis on Coinbase. He planned to enter a bullish swing trade on May 28th using a bullish Risk Reversal strategy with a bullish Call Vertical Spread and bearish Put Vertical Spread.
The trade is profitable, with a return of 39% on the initial risk.
Resources
For further definitions and information on the terms used in this article, please see the SpotGamma Support Center for a list of dozens of SpotGamma proprietary terms, as well as context for common market terminology.
