Coinbase (COIN) shares fell sharply on Wednesday, breaking below the stock’s 50-day moving average after the Senate failed to advance the Digital Asset Market Clarity Act.
According to Investor's Business Daily, if downside pressure in the stock continues, bearish options strategies may become more attractive for traders positioning for additional weakness.
The article highlights a bear put spread as one such setup. The strategy is designed to benefit if Coinbase shares continue to decline.
The source notes that this type of trade is typically used by market participants who expect further weakness in COIN while keeping risk defined.
