The Coinbase Trap_ Why Short-Term Trades are DANGEROUS Right Now!
Earn Your Leisure
iHeartPodcasts
4.9 • 7.9K Ratings
🗓️ 21 February 2026
⏱️ 8 minutes
🧾️ Download transcript
Summary
They used Coinbase as a real-time example of why short-term trades can be dangerous, especially around earnings.
The setup looked bearish: crypto was in a down cycle, other platforms like Robinhood had already shown crypto revenue weakness, Coinbase depends heavily on crypto (with a big chunk tied to Bitcoin), and Coinbase’s earnings came in with misses plus weak guidance and even analyst downgrades. A short-dated put seemed logical.
But after-hours price action flipped the script. Despite all the “bad news,” Coinbase popped hard, likely from institutional buying and a short squeeze, and the put got crushed because options traders can’t adjust positions after 4pm. The lesson: even when you’re “right” on the fundamentals, short-term options can still lose because momentum, squeezes, and liquidity hunts can override logic.
Their takeaway: if you insist on trading puts, give yourself more time (they suggested roughly 1 month, maybe up to 6 weeks), avoid tight stops, and account for volatility so you don’t get wicked out.
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Transcript
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| 0:00.0 | This is an IHeart podcast. |
| 0:02.6 | Guaranteed Human. |
| 0:04.3 | You got to talk about coin base and what that represents as far as short-term trades. |
| 0:10.9 | Because short-term trades, I got burnt a few times with short-term trades. |
| 0:14.3 | And the thing with short-term trades is that sometimes factors can work against you that you don't have control over. |
| 0:21.6 | And you gotta be extremely careful. |
| 0:25.6 | And that's a good example. I think this coin base situation. |
| 0:28.6 | So you want to talk about that? |
| 0:29.6 | Yeah, man. You talk about all of the signs pointing to a negative earnings report, right? Like if we look at the space that Coinbase is in, |
| 0:40.3 | obviously, cryptocurrency is huge for their bottom line. |
| 0:44.3 | We looked at how Bitcoin's predominantly has performed over the past six months, |
| 0:49.3 | or even in the last quarter, we talk about the downtrend of Bitcoin |
| 0:53.3 | and how long that usually lasts. Usually these downward cycles last anywhere between 150 to 360 days. On the shortest |
| 1:01.2 | term, it's been like 141. We are currently, that was Thursday, so we're currently in like |
| 1:06.5 | day 136 or something like that. So we're still in that short-term phase. You look at that. |
| 1:12.7 | You look how Robin Hood reported and they pulled back on their earnings, obviously because of the |
| 1:17.4 | downturn in their revenue from from cryptocurrency, Bitcoin being a leader. You see how much |
| 1:23.4 | the revenue comes from Bitcoin. I think it was like at 20%. And so you started asking yourself, |
| 1:28.2 | at least I was asking myself, like, okay, well, if we see all those metrics on a downward |
| 1:34.3 | trend, then Coinbase obviously must also be in this because it's in the same sector. You go |
| 1:41.3 | a little deeper into the research, you find that, you know, 50% of |
| 1:45.5 | Coinbase's revenue comes from cryptocurrency. It doesn't say specifically, there's no details on it, |
... |
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