RIOT Breakout Signals More Crypto Stock Upside

Blockchain name Riot Platforms (NASDAQ:RIOT) just saw a breakout above 2022 and 2023 highs, followed by a breakout and retest of its 2025 high. The shares are near $24, which is double this year’s twin lows in the $12 area. 

Short interest is up nearly 30% since January -- suggesting shorts are at a loss -- and represents 17% of RIOT’s total available float. The crypto miner had an ‘overbought’ Relative Strength Index (RSI) reading last month, which has tended to spell trouble for RIOT over the past five years. However, the stock avoided such a fate this time around, suggesting now's the time for bulls to move in. This could be a trending situation, too, with added support from an implied volatility (IV) that is in line with historical volatility (HV).

 
Our recommended call has a leverage ratio of 2.8 and will double on a 42.3% rise in the underlying equity.