Crypto Stock a Downgrade Risk Ahead of Earnings

Coinbase stock has quite a history of post-earnings moves, finishing lower the day after earnings six times in the last two years worth of reports. The stock averaged a 7.9% move higher during the last eight post-earnings sessions, while the options pits are pricing in a 13.2% swing this time around.

The stock is trying to find its footing near newfound support near $145 after pulling back to a nearly 10-month low of $145.16 on Feb. 5. Shares are down 42.9% decline over the past 12 months, a decline that has put COIN's 14-Day Relative Strength Index (RSI) deep into "oversold" territory at 17.

The equity received a downgrade this morning to "sell" from "buy" at Monness Crespi Hardt. More bear notes could be on the way, considering 21 of the 32 brokerages covering COIN maintain "buy" or better ratings.

Plus, COIN's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 96, indicating that the stock has tended to exceed option traders' volatility expectations during the past year.