Options Corner: Here’s The Veiled Correlation That Could Blow Up RIOT Stock
While blockchain mining enterprise Riot Platforms Inc (NASDAQ:RIOT) has been one of the market’s top performers, the good times never last indefinitely. Thanks in part to political pressure, RIOT stock fell sharply on Friday. Still, amid the noise, an undercurrent within the security’s short interest has developed that just might signal an explosive move down the line.
At the moment, President Donald Trump has once again stolen the limelight with another market-rippling social media post, this time threatening a sweeping increase in tariffs on Chinese imports. In response, the broader equity indices tumbled while gold and silver prices moved up.
“Some very strange things are happening in China! They are becoming very hostile and sending letters to countries throughout the world that they want to impose export controls on every element of production involving rare earths,” Trump wrote on Truth Social.
The president stated that he would “financially counter” Chinese efforts to monopolize rare earths, hinting that one of the measures could be a “massive increase of tariffs” on Chinese goods entering the U.S.
While the political drama doesn’t necessarily affect the cryptocurrency market directly, it pivots investor dollars away from risk-on, growth-oriented enterprises to traditional safe havens, such as gold. Combined with fears of a bubble brewing in the technology space, many investors decided to take profits from RIOT stock, along with other crypto-focused names like MARA Holdings Inc (NASDAQ:MARA) and Coinbase Global Inc (NASDAQ:COIN).
Undoubtedly, it’s a risky environment. Still, the red ink may present a possible discounted opportunity.
RIOT Stock Flashes An Interesting Short Interest Signal
Right now, the short interest of RIOT stock stands at 18.3% of its float, which is quite high. Though there’s no hard figure to officially …
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