$Circle(CRCL)$ 【Regulatory Boot Dropped, How Long Can CRCL Fly?】
The U.S. Senate passed the stablecoin bill on Tuesday, propelling Circle's stock price to $199.59 last night, a single-day surge of 33%, marking a sixfold increase since its IPO. Amid the excitement, options trading reveals another sentiment:
➣ The Put/Call open interest ratio reached 2.17, indicating that the market is using a large number of put contracts to 'buy insurance';
➣ Implied volatility soared to twice its usual level, and if prices get out of control, the fluctuations could similarly double;
➣ This week's Max Pain is only $140, a difference of more than $60 from the current price, and a high-level pullback could trigger at any moment.
More critically, Cathie Wood's ARK Invest has been continuously reducing its holdings this week, signaling that the main players are pulling back while selling. After the regulatory benefits are realized, will CRCL continue to be squeezed or enter a period of intense volatility?
Is the regulatory advantage a new starting point or a peak? What do you think? Will the options 'hedging umbrella' become a weakness for the bulls?
Follow the account to track the subsequent trends in real-time.
Not investment advice.