>>>We broke down the importance of hedging and the proper tools for that purpose yesterday, and today our hedge turned into 40 percent overnight — BANG. Today we’ll go over what happens when the VIX is elevated, how to trade a fear-driven market and more for Stonkamania at 1:30 PM ET!<<<
I’m watching something right now that’s flashing more red flags than a Communist parade — and it’s not just about Bitcoin.
The crypto market is having a complete liquidation break, and if you think that’s just someone else’s problem, you’re not paying attention. Bitcoin is down 11% in a week, Ethereum dropped 12%, and smaller coins like Pepe and Ethereum Classic got absolutely destroyed.
This isn’t a dip. This is a wholesale liquidation.
Here’s why this matters to you even if you’ve never touched crypto…
The people who make up markets and have money to spend in speculative stocks are the same ones invested in this crypto stuff. When they’re forced to sell their positions, they don’t just sit on the sidelines — they have to sell equities too.
The Sinkhole Effect Is Already Here
Think about it like this — when every house in your neighborhood has a sinkhole and the value gets cut in half, it’s gonna affect your house too. That’s exactly what’s happening in the high-beta stock space.
The damage is already showing up in crypto-linked names. Marathon Digital Holdings (MARA) went from $22 to $16, now it’s sitting under $12. Eos Energy (EOSE) dropped from $20 to sub-$13. CleanSpark (CLSK) basically got cut in half — $22 down to sub-$11.
And Bitdeer Technologies (BTDR) is down 60%.
But here’s what really worries me — this isn’t just about crypto stocks anymore. When you have everything cracking this much across the board — 5%, 10%, 15-20% drops all over the place — it signals a complete withdrawal of speculative capital.
The Liquidity Providers Are Tapping Out
I’ll be honest with you — I have zero skin in the game on Bitcoin. No positions, no bias, no desire to talk it up or down. That’s exactly why you should listen to what I’m seeing here.
The market is too dependent on crypto, and nothing good is gonna happen with Bitcoin under $90k. In fact, it briefly fell below $90k this morning before popping back above $92k. The people who provide liquidity to high-flying names — the momentum chasers, the fast money crowd — they’re getting margin calls on their crypto positions right now.
This is my biggest fear at the moment: The crypto markets rolling into the high-flyer stocks. When speculative capital dries up, it doesn’t discriminate. The same traders who were pumping these names on the way up are the ones hitting the sell button across their entire portfolio right now.
I know Bitcoin bounced off the lows today, but don’t let that fool you. This is not gonna end well. The liquidation cascade might be just beginning, and if you’re sitting in high-beta, momentum-driven names right now, you might want to ask yourself if you’re ready for what comes next.
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.
P.S. Your Reason for TGIF Is Most Likely Different From Mine
Lots of people look forward to Friday as they get to unwind from the week’s stress and take a breather over the weekend.
For me and a small group of savvy traders…
We look forward to Friday for a different reason altogether.
You see, there’s a special setup we’ve been taking that allows us to target weekly payouts on some of the market’s most interesting names.
And Friday for us is payday.
As long as our underlying stock doesn’t get totally cleaned out over the week, there’s a good chance we’re getting paid.
So far, we’ve collected 32 payouts on 33 trades. This includes:
A $538 winner on GOOG,
A $500 on MRVL,
& a $564 winner on META.
Of course, there were smaller wins and those that did not work out, and I can’t make reckless guarantees on the market…
But there’s still room for you to see exactly how the trade is set up… and jump in as we target this week’s payout.
If you’d like that…
