[CRCL falls continuously: Can favourable information from the financial report stop the "supply pressure"?]

Circle's Q2 report is actually quite good: revenue of $658 million, a year-on-year increase of 53%, and the circulation of USDC has almost doubled year-on-year, reaching 65.2 billion in early August. The losses were mainly due to one-time expenses from the IPO. By all accounts, such numbers should be stable.

But the stock price just won't buy it——the reason is very direct: the secondary offering is here, with a supply of 10 million shares hanging above, short-term funds would rather take a step back first.

The options market also shows some clues: the 30-day IV is around 82%, but the IV Rank is only 13%, indicating that the volatility expectation is not pushed very high; the daily Put/Call ratio is at 1.07, which is more about trend-following shorting with a bit of hedging, and it hasn't reached a panic level.

Strategic Thinking (Mainly for communication, not constituting investment advice)

1. Bearish but want to control risk: You can use a put spread below 150; the risk-reward ratio will look pretty good when it breaks the key level.
2. Think that the short term is just moving sideways: the Iron Vulture is trapped outside the range, earning time value, but the wings need to be placed far to prevent being hit by a gap.
3. Relatively Conservative Bearish: Use a bull call spread to create a ceiling above, with controllable losses.

How long do you think it will take to digest this round of secondary issuance? Can the growth rate of USDC sustain its valuation? Let's discuss in the comments. Follow + bookmark, and next time we will continue to track changes in the options market and capital sentiment.

— For market observation only, profits and losses are at your own risk —
#CRCL