Daily Option Income Strategy | Bitcoin's surge ignites the crypto sector! CRCL jumps nearly 10% in a single day—is the stablecoin leader facing a value revaluation?

I. Market Barometer

In the previous trading session, the three major US stock indices closed with narrow gains: the S&P 500 rose 0.21%, the Nasdaq dipped slightly by 0.20%, and the Dow Jones Industrial Average gained 0.26%. $Crypto (LIST20010.US)$ Broad-based surge, with the sector's overall gain reaching 6.35%, $Circle (CRCL.US)$ As the leader in stablecoin infrastructure, it rose over 9% in a single day. The high-volatility environment provided a prime window for option sellers to collect premiums.

II. Watchlist Highlights

CRCL: Bitcoin breaks through $70,000, compounded by legislative catalysts, leading to a massive volume-driven surge for the stablecoin leader

$Circle (CRCL.US)$ Closed up 9.56% on Wednesday (August 19) at $78.59, hitting an intraday high of $81.22. Trading volume reached $1.818 billion, with a volume ratio of 2.42 and a turnover rate of 11.54%, indicating significantly heightened capital participation. Pre-market trading continued to rise today, showing sustained bullish sentiment.

Looking at the candlestick chart for the past 30 trading days, $Circle (CRCL.US)$ After experiencing repeated oscillations in the $58–$66 range from mid-July to early August, a continuous rally began on August 7. The cumulative gain from the low on August 3 to date is approximately 25%. Previously, CRCL had been in a continuous decline from near $160 since its IPO in 2025, recently building a relatively solid bottom structure in the $70 area. The $82–$85 range above constitutes short-term resistance, while the $73–$75 range below has turned into a new support zone. In the short term, momentum is strong, with Wednesday's trading volume hitting recent highs and good volume-price alignment; however, caution is advised regarding profit-taking after consecutive sharp gains.

The core drivers behind CRCL's stock price surge stem from resonance in two areas:First, $Bitcoin (BTC.CC)$ Wednesday's surge saw it briefly break through $70,000, $Ethereum (ETH.CC)$ breaking through $2,200, causing sentiment across the entire crypto market to heat up rapidly, $Strategy (MSTR.US)$ Rose over 12%, $Coinbase (COIN.US)$ rose nearly 10%, with crypto-related stocks strengthening across the board; secondly, former US President Trump met with crypto industry executives that day, urging Congress to pass the "Clarity Act" for crypto regulation, $Coinbase (COIN.US)$ 、 $Circle (CRCL.US)$ and $Bullish (BLSH.US)$ Stablecoin and exchange-related stocks led the rally stimulated by this news, $Circle (CRCL.US)$ with intraday gains approaching 10% at one point. Additionally, the US Treasury increased its long-term bond buyback efforts to improve liquidity expectations, coupled with positive signals from the SEC's draft crypto regulations, jointly driving capital inflows into the crypto sector.

If stablecoin legislation proceeds smoothly, Circle, as the issuer of USDC, will directly benefit from expected market share expansion driven by the establishment of a compliance framework. Going forward, continued observation of the legislative progress of the "Clarity Act" is required, $Bitcoin (BTC.CC)$ whether it can hold above $70,000, and $USD Coin (USDC.CC)$ changes in circulating supply.

Wall Street is significantly divided on CRCL.The average target price among 20 analysts is $101, with a high of $175 (Monness) and a low of $37 (Morgan Stanley). Overall, 65% of analysts rate it as a "Buy," but the divergence in valuation reflects market uncertainty regarding the long-term profitability of the stablecoin business model.

3. Options Premium Collection Strategy

1. Cash Secured Put

Sell 1 contract of $Circle (CRCL.US)$ 260911 62P, and reserve sufficient cash for potential assignment.

Opportunity Rationale:

Bitcoin surges, $Circle (CRCL.US)$ with daily volume spiking and gains exceeding 9%, sending sentiment in the crypto sector to a阶段性 high. For investors who do not yet hold positions but are bullish on the long-term logic of the stablecoin sector, chasing the rally now carries the risk of short-term profit-taking.

CRCL's current implied volatility (IV) stands at 85.56%, which is moderately high. In this high-IV environment, selling Puts can generate substantial premiums. If the stock price remains strong or consolidates at high levels, the premium serves as enhanced yield on idle capital; if the stock pulls back to around $62 and the option is assigned, it allows for building a position at a lower cost basis.

2. Covered Call

Hold 100 shares $Circle (CRCL.US)$, sell 1 contract of CRCL 260904 90C

Opportunity Rationale:

For investors already holding $Circle (CRCL.US)$ For investors holding the underlying stock, the price has risen sharply in the short term driven by crypto sector sentiment, facing pressure from profit-taking. However, the long-term investment value of the stablecoin sector remains intact. Investors who wish to manage pullback risk without directly selling their shares can consider selling Calls.

Selling Calls generates premium income, thereby lowering the持仓 cost basis. If the stock continues to consolidate or experiences a slight pullback before expiration, the premium can partially offset the drawdown. If the stock breaks above $90 and the option is assigned, it effectively locks in阶段性 profits near the target price.

A key prerequisite to note: if an investor is strongly bullish that Bitcoin will continue to surge in the short term, driving CRCL to new all-time highs, this strategy may cap upside potential. It is recommended to conduct a comprehensive assessment combining insights from the options selling section, real-time market data, and margin requirements.

IV. Risk Management Advisory

Although seller strategies have a high win rate, investors must still implement proper risk management:

– Position management is everything.: The biggest risk for option sellers lies in black swan events. It is recommended that margin allocated to any single underlying should not exceed 20% of total capital. Never sell options beyond your capacity to absorb losses just for the sake of collecting higher premiums.

– Covered Call and Timely Rolling: When a covered call becomes deeply in-the-money (i.e., the stock price far exceeds the strike price), if you remain bullish on the underlying stock, you should decisively 'roll' the position—buy to close the current option and simultaneously sell a longer-dated call with a higher strike price—to avoid having your shares called away at an unattractive price.

– Cash-secured put options: Beware of 'left-tail risk': For cash-secured puts, if the stock price crashes due to fundamental deterioration (rather than a normal pullback), don’t hold on stubbornly. In such cases, exit with a stop-loss or roll the position down to buy time while waiting for volatility to normalize.

Make good use of the Options Seller Hub to understand income strategies for selling options and earnOption premiums！

Options Risk Disclosure

An option is a contract that gives the holder the right—but not the obligation—to buy or sell an underlying asset at a predetermined price on or before a specified date. Option prices are influenced by multiple factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market's expectation of future volatility over the life of the option and is derived by back-solving from the Black-Scholes option pricing model. It is commonly viewed as an indicator of market sentiment. When investors anticipate higher volatility, they may be willing to pay more for options to hedge their risk, leading to higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute an offer, solicitation, recommendation, advice, opinion, or any guarantee regarding any securities, financial products, or instruments. The risk of loss in trading options can be substantial. In certain circumstances, your losses may exceed the initial margin deposit. Even if you place contingent orders, such as 'stop-loss' or 'limit' orders, there is no guarantee they will prevent losses. Market conditions may render such orders unexecutable. You may be required to deposit additional margin on short notice. If you fail to meet the required margin within the specified timeframe, your open positions may be liquidated. Nevertheless, you remain fully responsible for any resulting deficit in your account. Therefore, prior to trading options, you should thoroughly study and understand options and carefully consider whether such trading aligns with your financial situation and investment objectives. If you trade options, you should become familiar with the procedures for exercising options and handling expiration, as well as your rights and obligations upon exercise or expiration. Options trading involves substantial risk and is not suitable for all investors. Investors should carefully read 'Characteristics and Risks of Standardized Options' before engaging in any options trading strategy.

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