Crossroads
BMNR Options Strategy: How I'm Making BANK on this stock!
10/7/2025, 2:45:04 PM
Economic Summary
- BMNR pivoted from a bitcoin-mining business to a digital-asset treasury focused on Ethereum, causing a big run after announcing Tom Lee; the company now trades at a premium to net asset value and uses share issuance plus asset purchases as part of its model.
- Implied volatility for BMNR options is extremely high (100%+ in examples), making weekly option premiums unusually rich and attractive for selling covered calls and cash‑secured puts to generate income.
- BMNU is a 2x leveraged vehicle tied to BMNR with even higher IV and premiums, but much lower liquidity and wider spreads, increasing execution and holding risks; taxable account option sales can create significant tax consequences for investors.
Bullish
- High implied volatility creates large option premiums, enabling lucrative income strategies.
- BMNR shifted to a digital-asset treasury (Ethereum) and saw a strong post-announcement rally.
- Using wheel strategies can generate share purchases and yield via premiums.
Bearish
- BMNR faces dilution risk and could be hit hard by an Ethereum/crypto downturn.
- BMNU has poor liquidity and wide spreads, making it risky to hold long term.
- Selling covered calls in taxable accounts creates unwanted tax liabilities.
Bullish tickers
BMNRETH
Bearish tickers
BMNRBMNU
BMNR
4 price targets
70727480
Bullish
High implied volatility yields large option premiums; corporate pivot to an Ethereum treasury and Tom Lee announcement drove sizable upside and income-generation opportunities.
Bearish
Subject to dilution and major downside if Ethereum experiences a crypto winter; tax consequences when selling covered calls in taxable accounts.
BMNU
3 price targets
302928
Bullish
Approximately 2x leveraged exposure to BMNR with extremely high premiums useful for short-term option income when capital is limited.
Bearish
Low liquidity and wide spreads increase execution risk; not ideal as a long-term holding despite leverage.
PLTR
Bearish
Previously generated tax liabilities in the speaker's taxable account.
NU
Bullish
Owned by the speaker as a buy-and-hold position.
Bearish
Nubank is described as poor for options; the speaker rarely sells options on it.
HOOD
Bullish
Used as the trading interface showing option chains and fills.
Bearish
Platform noted for bid/ask spreads and small regulatory fees when executing options.
ETH
Bullish
BMNR purchases undervalued Ethereum as part of its treasury strategy, providing indirect ETH exposure.
Bearish
A crypto winter in Ethereum would materially hurt BMNR and related products.
People mentioned
Tom Lee