BABA/Pman – Yes, way too low at the moment.
- Coinbase Global (COIN +5.3%) stock advances after the crypto exchange platform signed up more than 1.35M people as of this morning for its not-yet-launched non-fungible token platform (NFT) platform, according to a note from BTIG analyst Mark Palmer.
- That's more than the 300K+ users on OpenSea, the world's largest NFT marketplace, Palmer wrote in a note to clients. He reiterates his Buy rating and price target of $500.
- The company plans to launch Coinbase NFT, a peer-to-peer marketplace through which users could mint, collect and trade NFTs, and on Tuesday opened a waiting list for users to get early access to the platform.
- Palmer sees the NFT platform "offering promise of new, higher-margin revenue stream" as part of its "accelerating diversification effort."
- The BTIG analyst estimates the new platform could add $137.5M to Coinbase's (NASDAQ:COIN) revenue, or about 2% of Palmer's full-year 2021 revenue estimate.
- The Buy rating aligns with the Bullish SA author's rating of 3.58 and the Bullish Wall Street analysts rating (9 very Bullish, 5 Bullish, 6 Neutral, 1 Bearish).
- On Wednesday, ViacomCBS teamed up with RECUR to enter the NFT word.
COIN is kind of interesting as they are well below their IPO price but NFT is a whole other (and more realistic) revenue stream for them, in addition to being a crypto exchange. They are making about $1Bn per Q and $260 is $67Bn in market cap – so not too bad, actually. Good one for the Future is Now Portfolio so let's add:
- Sell 2 COIN 2024 $200 puts for $44 ($8,800)
- Buy 5 COIN 2024 $200 calls for $105 ($52,500)
- Sell 5 COIN 2024 $300 calls for $70 ($35,000)
That's net $8,700 on the $50,000 spread that's over $25,000 in the money with upside potential of $41,300 (474%) – the future is fun!
In the LTP, let's just sell 5 of the 2024 $200 puts for $44 ($22,000) just to keep an eye on them. We either own them for net $156 ($78,000 – 40% below the current price) or we just keep the $22,000 – I'm good either way…
And, of course, we wouldn't go in at $156 as we'd roll and sell calls, etc so it's doubtful we're even committing more than 1/2 of a $100,000 allocation block to this one.
