Riot Platforms, Inc. (RIOT:NASDAQ)
Price at Preparation: $11.48 (July 15^th, 2024)

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What they do

Riot Platforms, Inc. (RIOT:NASDAQ) is a vertically integrated bitcoin mining company engaged in enhancing capabilities to mine bitcoin in support of the bitcoin blockchain. It also provides comprehensive and critical mining infrastructure and data center hosting services for institutional-scale hosted clients to mine bitcoin at their Rockdale Facility.

It operates through three segments:

• Bitcoin Mining: Operates approximately 113 thousand miners.
• Data Center Hosting: Providing co-location services for institutional-scale bitcoin mining companies out of their Rockdale facility.
• Engineering: Designs and manufacturers power distribution equipment and custom engineered electrical products.

Welcome to Theta Bandits Top Pick Tuesday. We strive to bring you relevant free content, scouring the markets and making plans to get ahead of what we think could be new potential winners in any portfolio.

Opinion

After a few months of sideways action, Riot Platforms, Inc (RIOT:NASDAQ) shot up a whopping 20% during today alone. There have been several catalysts waiting for this stock, with today’s pop hopefully the start of a meaningful leg up. This stock is very tied to Crypto Currency (Bitcoin, Ethereum etc.) and as we had Bitcoin ETFs approved previously, Ethereum ETFs approval was in the news to be finalized in the coming week which is catalyst number 1. Politics is catalyst number 2 with Donald Trump seeming to warm up to Crypto Currency in his presidential campaign. After the attempted assassination, his team confirmed he will still be delivering a keynote at the Bitcoin Conference on July 27^th, 2024 – catalyst number 3.

While the above catalysts are good for the short term, we can also look down the road what the analysts covering the stock think. The chart below shows the street consensus with 12 Buys, 0 Holds, 0 Sells and the 12-month Price Targets (PT) as follows:

• Low: $12.00 USD (+4.53%)
• Average: $18.16 USD (+58.21%)
• High: $23.00 USD (+100.35%)

Plan

As usual, find the visual aid below with following colors:

• Blue: 52-week high.
• Red: 52-week low.
• Green: 12-month PTs (high, avg, low).
• Orange: Support/resistance lines, information.
• Yellow: Our potential plan targets.

Before we look at a target, let us look on the visual aid from left to right – notice in orange there are circles highlighting meaningful moves up, which is what we are looking to replicate and catch. Notice this usually has multiple green candles for a few days up, and then just as strong of a move down. We need to catch that upside and get out before that downside repeats. This will be a quick play not for the feint of heart. As always please secure profit on the way up and set / adjust stop-losses along the way to be triggered if that move down starts.

There is always the saying “buy the rumour, sell the news.” With that sentiment at top of mind for a short-term trade, there is a high probability of the stock gaining until the Bitcoin Conference on July 27^th, 2024. Since this is a Saturday, use the highlighted Friday 26^th, 2024 as a marker to end the trade if it is still active and in profit.

You might be asking yourself: do I have to sell all the stock?

There are always multiple ways to attack the trade, depending on your experience and risk profile. Possible paths forward are as follows:

1. If the trade is still active – sell the stock and exit the trade.
2. If the trade is still active, but you have a higher risk tolerance – sell to retain the original capital and let only the profit continue.
3. Using options – to find out more sign up to attend our weekly Theta Bandits Webinar – When we trade together, we learn together!

RISKS

The goal is to grow capital by securing profits along the way and limiting losses. This trade is riskier than our usual picks. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk.

If you’ve been finding our picks helpful, imagine what the live version holds. You know what to do 👇

Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.