TeraWulf: What to Expect in the Coming Weeks for Cryptocurrency Miner – TeraWulf (NASDAQ:WULF)

Cryptocurrencies once again caught the bullish error after a bout of sideways consolidation, which naturally led to a helping hand For blockchain miners.

among them, Terawolf Company Wolf He currently ranks among the top performers on Friday. Based on conditions similar to the previous extreme volatility response, Terawolf may see a slow but steady rise over the next few weeks, allowing traders to plan their options strategies.

Fundamentally, TeraWulf is on relatively solid ground. As Needham analyst John Todaro noted last September, the company is one of those companies Top miners to shift data center capacity For High Performance Computing (HPC). As the Benzinga report stated, “High-performance computing (HPC) represents a large, growing, high-margin revenue opportunity with long-term contracts that provide long-term revenue and margin transparency.”

Investors should note that Friday’s opening price of $6.21 already exceeds Todaro’s previous target price of $6. However, the fundamentals that inspired the Buy rating – particularly strong growth (year-on-year) and stable business margin in relation to operational efficiency – remain intact.

Therefore, risk-tolerant investors have reasonable confidence that TeraWulf shares could rise from here. However, basic nuances may play an important role in the actual strategy.

Deciphering TeraWulf’s next potential moves

Overall, TeraWulf carries a slightly negative bias. From week to week, it’s a lottery to see if a stock will have a positive or negative return. On a four-week basis, the odds drop to 45.95% that a position open at the beginning of the period will expire in the black by the end of the period.

Instead of randomly calculating Terawolf sentiment (i.e. compiling all events into a huge data set), investors can monitor behavioral changes based on extreme events. For example, in the business week ending January 10, TeraWulf lost 16.8% of its value. Over the past five years, there have been 37 times a blockchain miner has lost between 10% and 20% within a one-week period.

Of these 37 incidents, TeraWulf stock recorded positive returns by the end of the trailing fourth week 22 times, or 59.46%. During these positive results, the average return hours reached 18.46%. In other words, when calculating company trends dynamically — specifically in response to an extreme fear event — investors tend to be unusually bullish.

However, the nuance is that the largest lift in one week compared to the underlying event (in this case, last Friday’s closing price of $5.40) tends to be achieved in the first week after the volatility anomaly. With an average first-week rise of 7.84%, TeraWulf is currently outperforming its statistical trends.

However, the odds favor at least a continued uptrend for the options series expiring on February 7. Assuming TeraWulf stock follows a similar statistical path in the second to fourth week after the extreme fear event, shares could reach a price of around $7.23.

Using leverage for the Bull Call Spread plan

With the president-elect Donald Trump Opening soon, it’s natural to be very bullish on cryptocurrencies and by logical conclusion, TeraWulf stock. After all, Trump is planning to issue Executive order To declare blockchain assets a national priority.

However, as mentioned earlier, the statistical trend following an extreme fear event is for the largest spike to occur in the first week. From the second week to the end of the fourth week, TeraWulf stock is expected to rise only 9.85%. This doesn’t move the needle much on an open market deal.

On the other hand, A. said: Bull call spread It uses the power of leverage to achieve strong returns in a short period of time. This options strategy involves buying a call option and simultaneously selling a call at a higher strike price for the same expiration date. The idea is for the stock to reach the short strike price. Furthermore, the credit received from the short call helps partially offset the debit paid for the long call.

To be clear, an unexpected bout of volatility could result in a trader losing the entire net debt paid to enter the trade. However, if TeraWulf reaches the desired short strike target, the rewards could be enormous, depending on the specific transaction.

For aggressive traders, they might consider a 6/7 bullish call spread (buy the call $6, sell the call $7) for the options series expiring on February 7. At the time of writing, the net debit required to enter the trade is $47. Opportunity to earn a maximum of $53 or a return of approximately 113%.

This is a far cry from 9.85% over the same time period, making high spreads very tempting to the sophisticated speculator.

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