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🕒 Market Overview: At $166.30 per share, COIN is a liquid stock with a market cap of over $38 billion. COIN trades an average of over 12.77 million shares per day. COIN beat EPS and revenue forecasts in its latest October 30, 2025, earnings report.

📈 Sector Insight: The midpoint of COIN’s October 2025 high and February 2026 low is $273.66 per share. The top strike price of the vertical bull call spread is below the midpoint of the trading range. I view COIN as a proxy for Bitcoin and cryptocurrencies. A recovery in prices could make this call spread golden, with an attractive 1:4 risk-reward ratio.

💡 Today's Trade Idea: Bull Call Spread on COIN.

SMART TRADE IDEA 💡

Bull Call Spread on COIN

Trade Setup: Buy $200 Call / Sell $250 Call, June 18, 2026, expiration.

Cost: $10.00 or lower ($1,000 per spread)

Max Profit: $40.00 ($4,000 per spread)
Breakeven: $210.00 on COIN on June 18, 2026
Risk-reward: 1:4

Management Plan: Take profits, or roll up if COIN’s price reaches $250 before June 18, 2026.

NOTE: Remember, options trading involves substantial risk and is not suitable for all investors. Consider your investment objectives, financial resources, and experience level before implementing this or any options strategy.

DISCLOSURE: Trade recommendations may have changed since publication. Evaluate current market prices and risk/reward before acting. Trading involves significant risk and is not suitable for everyone. This is not personalized investment advice. Past performance doesn't guarantee future results. Publisher and contributors may hold positions in recommended securities. Readers assume full responsibility for their trading decisions. Consult a financial professional before investing.

Bitcoin’s Correction Is Following a Familiar Script

Bitcoin’s price has plunged off the side of a bearish cliff, but the decline is nothing out of the ordinary, considering the leading cryptocurrency’s price history. Bitcoin is a highly volatile asset, with its share of proponents and opponents. The bullish and bearish cases are compelling, depending on where you stand on the novel asset that burst onto the scene in 2010 at five cents per token. At its October 2025 high, Bitcoin reached $126,184.05, and it has since declined 52% to the February 2026 low of $60,514.55 per token. If history is a guide, Bitcoin could be in the buy zone around $70,000 per token. 

The case for Bitcoin

The following factors continue to favor Bitcoin during the current price correction:

The present U.S. administration favors Bitcoin and cryptocurrencies as alternative means of exchange.

Financial institutions have increased the availability of cryptocurrencies for market participants.

Since 2010, Bitcoin has experienced boom-and-bust price action, suggesting the current correction will bottom out and recover, perhaps to new all-time highs. Each correction over the past 16 years has led to a new record-high price.

ETF products tracking Bitcoin’s price have increased, offering greater speculative and investment potential.

The price history suggests that Bitcoin will eventually find a bottom during the current correction. 

The case against Bitcoin

Bitcoin has more than its share of detractors:

Warren Buffett called Bitcoin and cryptocurrencies “financial rat poison squared,” and said he would not pay $25 for all the Bitcoin in the world.

Peter Schiff, a hedge fund manager, recently said that Bitcoin’s long-term value proposition is fundamentally flawed, despite its global adoption, suggesting he believes Bitcoin will eventually be worth nothing.

Many high-profile financial market leaders believe that Bitcoin and cryptocurrencies have no intrinsic value.

The debate between the proponents and opponents continues and seems to increase during corrections. 

The reasoning for a small bullish risk position

The stock market is at an all-time high, with the Dow Jones Industrial Average reaching 50,000. The dollar index has fallen to its lowest level since early 2022, signaling declining confidence in the world’s reserve currency. Gold and silver, the world’s oldest means of exchange, have rallied to all-time highs. While prices corrected dramatically from the late January 2026 highs, gold and silver prices remain above the December 31, 2025, closing levels.

The appetite for alternative assets has increased, and Bitcoin and other cryptocurrencies help fill some of the gap left by price action in traditional markets. 

A trade recommendation after the plunge

Coinbase (COIN) is a leading cryptocurrency trading platform, and its price moves in tandem with Bitcoin and the broader cryptocurrency market.

Source: Barchart

Bitcoin dropped 52% from its October all-time high, while COIN shares fell 65.35%, moving from $402.16 on October 10, 2025, to the most recent low of $139.36 per share on February 12, 2026. COIN underperformed Bitcoin during the current correction, and if history is any guide, it could outperform Bitcoin when a recovery gets underway.

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