Since reporting its earnings on Feb 15, Coinbase Global (COIN) stock is up over 41% in the past month. As a result, its put options have skyrocketed. Investors expect a retraction. But this is a huge opportunity for short-sellers as an income play.
COIN stock is at $240.37 in morning trading on Friday, March 15. But far out-of-the-money (OTM) puts are at huge premiums. For example, the $217.50 strike price expiring in less than 2 weeks on March 28, is trading for $7.05 per contract. That represents an immediate yield of 3.24% (i.e., $7.05/$217.50).
