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Looking for the next big crypto trade? BMNR Tom Lee's Ethereum crypto fund is positioned for huge gains. In this video, I'm breaking down exactly what BMR is and exactly how I'm trading it on the trading platform. I'll show you step by step for huge profits. Before we dive in, one thing I ask, smash that like button for me down below.
It really helps out the channel and I appreciate it very much. You're certainly welcome to subscribe as well. We're at an all-time high for subscribers. And check out the free options trading workshop in the link below. There's a free link down below. There's a paid course as well. If you're new or beginning options, start there uh at the free options workshop.
And if you just want to level up your game, uh check out the paid course. What is BMNR? Well, BMR stands for Bitmine Immersion Technologies, and it's a publicly traded fund led by Tom Lee, and he's a well-known market strategist and chairman of the company. Under his leadership, BMR is aggressively accumulating Ethereum, targeting ownership of 5% of the total Ethereum supply, a move Lee calls the alchemy of 5%.
This positions BMR as the largest public holder of Ethereum and the second largest crypto treasury overall, just behind Micro Strategies Bitcoin Holdings. BMR's core strategy is to build a massive Ethereum treasury, capitalizing on the growing institutional interest in Ethereum and the expanding role of blockchain and AI in the financial system.
The fund recently raised 365 million at a premium share price to further expand its Ethereum holdings, underscoring strong investor confidence. As of September, BMR controls over 2% of all Ethereum tokens in circulation with total crypto and cash assets valued at approximately 11.4 billion. This substantial Ethereum treasury is at the heart of BMR's market positioning and growth potential, making it a unique play on the Ethereum ecosystem beyond direct crypto purchases.
Why is BMR poised for growth? Well, there's a few reasons. BMR's growth potential is driven by its aggressive accumulation of Ethereum targeting that 5% which creates a significant supply squeeze that can fuel price appreciation. Institutional interest in Ethereum is surging. It's evidenced by the ETF inflows that far outpace Bitcoin, signaling growing mainstream adoption of Ethereum's DeFi or decentralized finance and smart contract platforms.
The key catalyst for BMR's gains include ongoing capital raises to buy more Ethereum staking yields unique to Ethereum that boost returns and favorable regulatory developments like the Genius Act, providing stable coin clarity. The upcoming Ethereum network upgrades further enhance scalability and utility, supporting long-term price growth.
BMNR stands out among crypto investment vehicles by combining a massive, steadily growing Ethereum treasury with high liquidity and transparent public stock trading, offering investors an easy regulated way to gain leverage, exposure to Ethereum's upside without directly holding cryptocurrency. And this is what I really love about it because you trade it like a stock and there's options which you're going to see coming up.
Uh so it's all transparent and uh I feel like it's not as big of a risk as some of the other crypto type investments. The institutional backing, capital structure, and market positioning make BMR a compelling proxy for Ethereum's potential rise with the fund uniquely positioned to benefit from both Ethereum price appreciation and staking rewards in a rapidly evolving blockchain ecosystem.
So, what is the best strategy for trading BMNR? Well, I'm using the PMCC on BMNR. So, the poor man's covered call. I love this strategy, and here's why. The poor man's covered call is a lowcost leverage options strategy that involves buying long-term options called LEAPS options. It's a deep in the money call as a substitute for owning the stock and then selling shorterterm call options against those leaps to generate monthly income.
This strategy allows capital efficiency and defined risk while collecting premium to reduce the overall cost basis. BMR is ideal for the poor man's covered call due to its strong growth potential and high implied volatility which provides attractive option premiums. The fund's institutional backing and steady Ethereum accumulation reduces downside risk making it suitable for income focused tactical option plays.
So I think it's pretty safe for entry. I typically buy leaps with a strike slightly in the money or at the money to capture the stock upside while maintaining time value. I'll go out about 365 days or more. I then sell an outofthe-oney call with 30 to 45day expirations to collect that income, that monthly income month after month.
And I adjust the strikes based on market conditions. The risk is managed by monitoring the LEAPS's premium decay and rolling strategies at BMR price drops significantly, preserving capital while targeting steady gains. This approach balances aggressive growth exposure with prudent income generation and risk mitigation, fitting well with BMR's characteristics and my market outlook.
All right, let's jump on the trading platform and I'll show you exactly how to place the poor man's covered call in BMR. And I think I'm going to throw another one on right now. All right, guys. So, here we are on the Tasty Trade trading platform and brokerage. This is the platform that I use for trading options.
It's super intuitive and uh one that is uh excellent that I really like. So, there's a link down below. Check it out. Uh there's some benefits if you go through my link. Now, BMNR is currently uh trading at $54.93. And you can see I've got these two positions on right now. So, I've got uh two LEAPS options, one at 30, one at 60 because it's already moved up quite a bit.
Uh, and then I've sold 65 a 65 call against uh the 30 and a 80 against the 60 recently. Uh, so I'm collecting short-term premium and then I've got the long-term. I went out 478 days because there's not that much difference between the 365 days and the 478. And I see this as a long-term uh winner. So uh let's look at the trading uh at the option chains.
So if we go to June, which it's only 267 days. So you could open that up and we could go at the money $50 and buy that for 20. We've got calls on the left, puts on the right. So we want to buy the put or the call. So we would click, we could go the the 50 strike call, uh 267 days out, and it's two 24.95.
But here, let me move this over here. If we go ahead and if we look at that and if we go out to the next expiration cycle we close that up. Well, we can just hit this and it's going to go out to the next one. 478 days. That same option is only $500 more. So, to me, the 478 days uh makes the most sense.
So, I like the 478. That's where I'm trading right now. So, let's uh focus on that. We're going to open that up. Uh, let me clear this. Now, I'm gonna go slightly in the money. So, I'm going to go to the 50 strike. And you can see I've already got the 60 and the 30 on right now. But, we can go the 50 strike and click on the, uh, buy to ask that.
Now, one option contract controls. Let me clear that. I've got two on there. So, uh, 478 days, 50 strike. There we go. Now, we've got it right. 3055. So mid price is $305. So one option contract controls 100 shares of stock. So that's 30 time 100 which is $3,05 to control the 100 shares of stock for $478 days.
And to buy the crypto outright, the 100 shares or the fund BMR, it would cost 544 time 100 or 5,444. So, uh, we're paying uh almost 50% less. Not quite. We will after we put on this short call, though. So, let's go to the curve mode. This is what I like about Tasty Trade. And you can see if we go analysis, you can see the uh I've got other positions on, so it's kind of affecting this, but you can see just like owning the stock uh outright, it increases in price as the stock price goes up.
So, if it hits a hundred, this $30 uh $3,000 investment, uh the P&L at expiration is $4,700. So, uh it's quite a bit more. Now, uh what we're going to do, go back to the table mode, and I'm going to buy this one, the 50 strike, and then at the same time, this is the beauty of the poor man's covered call.
We can collect monthly income. So, we're at 23 days to expiration. I normally start rolling to the next month around this time. So, I'm going to go ahead and open up the November. And uh this is what uh is great about BMR. There's huge premiums. Look at this premium. Uh the 65 that I've got on which has, you know, that's a 10% up move.
So, we can make 10% up on the stock and collect $7.85 uh as soon as we hit as soon as we buy it. So, watch the price of this $3,5 or $305 go down by almost $8. Boom. Now, we're at 2225 and we're selling this short call against it. So, we're still profitable. Uh, it's capped. Um, if we go back to the curve mode, you can see it kind of caps it here.
Uh, but that's okay because we're going to roll that uh monthly option month after month. So, uh, let's go back to the table mode. So, we can go 785. Get it down. So, now we're paying 21.97. We could hit review and send and place the trade right here, but I'm going to go a little bit uh further out.
So, this is the 47 delta. I like to go around the 38. So, I'm going to go to the 75. Wow, that's huge. That's 20 points up from here. Maybe I'll even go for a dollar more. I can go to the 70 and uh collect $6.65. So now we're at 2315 and that's pretty aggressive. Um but if we can collect five or $600 every month, then this is paid off in four months.
So is BMR going to be around in four months? I think so. I mean it's risky, but I'm going to basically pay it off by collecting monthly pre premium in less than six months, four months. I'm pretty sure it's going to be around. So this is what I'm doing. Uh I'm selling the 70 short call and uh I'm buying the 50 uh long call, the LEAPS option in January, 478 days out to expiration.
So I'm going to go ahead and hit review and send and place a trade. Boom. Filled. So to recap, BMR is a compelling fund with Tom Lee's visionary leadership, its strong institutional backing and growth in crypto, and with these meaty premiums that you can collect every month, we can cover the cost of the leaps in under six months, which is huge.
So, uh, in conclusion, make sure you like and subscribe down below. Download that free options workshop. Leave a comment. Ask a question. I answer everyone. And let me know if you're trading BMR or any other stock that you think's a hot play right now. All right. If you like this video, watch this next one.
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