Full CRCL Moment: Circle Hits 4-Month High Amid Upgrade, Bitcoin Rebound

0:00Give it back here on Market & Clothes and it's time now for Options Corner. I'm here with a Richter Cat lead market technician and we're looking at Circle today, Clear Street upgrading shares to buy from Hold and raising its price target to a 136 bucks from 92. So just talk us through this one. How does it stuck up against the others today, Rick? Right, so a tech sector company but perhaps might even fit a little bit better in the financial sector as it's more of a platform and market infrastructure for stable corn and block chain applications as well as digital assets and payments here. So if you were to compare it to its own tech sector, it's up about 3% more since it started trading during its underlying sector here. And to look at kind of this crypto space as a group here, you can see Circle doing a bit better than many of the other names. Bitcoin has been quite volatile recently here. You can see Bitcoin is our green line here. So as the fortunes of Bitcoin improve, many of the names in this sector may also see sympathy moves. Another analyst move

1:03that we saw recently, March 13th, the price target bump from Mizzouho as well, up to 120 from 100 and they kept it their neutral rating here. So to go into the stock more specifically here, we can see that our price activity recently has been in an upswing. We've seen an upward sloping channel type shape here between our two white lines. After we had our earnings event, we had a small gap up. That gives us the area between 63 to 70 to watch out for for that gap to potentially be filled. Now we've come up to an interesting area as well today. This area near 124, 125 at which we have topped out here recently. You can see that the low points that we formed here, mostly a line with that area. So that's an interesting area that we've stopped today here, the edge of a previous range of activity. If we were to go one step higher, 150 stands out that was the high point from our range here as well as a prior low point and about

2:06where trading began after another gap to the upside here. So if we were to look at our moving averages, in this case, we're looking at simple moving averages here because we don't have our full year of trading activity. So we can see our faster 20-day simple moving averages crossing above our slower 50-day simple moving average here of those come in at 91.62 and 78.84 respectively. RSI looking quite strong though. We're in the overbought area here that threshold above 70 with the reading of 77.5 now. So look for price to keep making new relative highs and for the RSI to follow suit as well, making new relative highs with its own reading alongside price. So now when we look at our volume profile study, we can see here that the heavy trading range in which price has a kind of finding itself in the middle, that comes in between about 110 to 140 kind of seeing a particular spike near about 135.

3:06If we were to move lower, our point of control stands out near 84.50, our heaviest trading area of all sits a bit below us here. So heavy volume at a significant low point on the chart, often interpreted as a sign that it was a significant price level that was reached. All right, so that's the technicals on circle today. It's a railing up over 8%. Just talk us through some of the options activity or any sort of notable trades that you've seen out there, Rick. Sure. So at the time I checked about 136,000 options changing hands so far today, 54% of those were calls roughly here. So a bit of a heavier day of the average, the sizzle came in at 1.29, which is 1.29 times the five day moving average of options volume here. So most of that activity in terms of the volume and the open interest is in our March 20th monthly expiration that's at the end of this week here, about 30% or so of the total open interest in this name comes in there. In terms of interesting trades, there was one set of a sweep trade here, several legs here,

4:12the total amount, the quantity plus 200 December 15th, 2028. So more than a year out there, 70 strike calls at a net debit of $1.68 million seems like it's an opening bullish trade in this name. All right, great staff of a circle rallying today. Thanks so much for getting us across some of the options activity and the technicals on this name, Rick.