Strategy: Volatility Doesn’t Stay Quiet for Long

At SetYourStop, we’re constantly scanning for setups that combine technical compression with bullish positioning—because when both align, explosive moves often follow.

Galaxy Digital Holdings (GLXY) is a perfect example of this.

While recent bullish options activity put the stock back on our radar, it’s the Bollinger Band squeeze—also known as a volatility contraction—that has our full attention. This is one of our favorite setups to track, especially when paired with bullish macro context and a clear technical base.

What Is a Bollinger Band Squeeze?

A Bollinger Band squeeze occurs when the bands narrow significantly due to a drop in volatility. This visual compression represents a market that’s coiling—like a spring under tension. And what happens to a spring under pressure?

Eventually, it snaps.

Technically speaking, low-volatility periods often precede high-volatility moves. This is why we monitor squeeze conditions closely—they can signal the end of consolidation and the beginning of expansion, often leading to powerful breakouts in either direction.

In GLXY’s case, the chart is showing signs of an upward breakout forming.

The Setup: A Base, A Squeeze, and a Crypto Tailwind

Galaxy Digital has been forming a base for weeks, with price action gradually working up the right side of the pattern.

From our June 24 Daily Setup Report:

Real-Time Chart from SetYourStop Report

By June 26, the pattern remained intact as price continued to push against overhead resistance.

Meanwhile, the crypto market itself is beginning to show signs of strength—adding a potential sector tailwind to the trade.

The Options Activity: Bullish Conviction Building

June 17 – Unusual Activity Report

• Calls bought at $32.50, puts sold at $17.50 (both Sept 2026 expiry)

• Premium: $1.75M (calls), $645K (puts)

• Sentiment: Long-term bullish positioning with size > open interest

Options Activity Snapshot from Our Unusual Activity Report

June 20 – Unusual Activity Report

• Calls bought at $22.50, October expiry

• Premium Paid: $239K

• Spot: $19.98

• Sentiment: Near-term upside targeted

Options Activity Snapshot from Our Unusual Activity Report

June 24 – Unusual Activity Report

• $15.50 puts sold, July expiry

• Premium Collected: $93K

• Spot: $19.41

• Sentiment: Confidence in holding above key levels

Options Activity Snapshot from Our Unusual Activity Report

This combination of call buying and put selling—across both near- and long-term timeframes—reflects a consistent bullish outlook from institutional participants.

Why This Setup Stands Out

✅ Technical base forming
✅ Volatility squeeze visible
✅ Repeated bullish options activity
✅ Strengthening crypto environment
✅ Undervalued vs. crypto peers

GLXY has everything we look for in a breakout candidate: structure, flow, narrative, and timing.

What to Watch Now

The price remains tightly compressed, and Bollinger Bands would reflect this clearly if plotted—indicating that the volatility spring is coiled. If momentum kicks in, particularly alongside crypto strength, we’ll be watching for:

• A break above key resistance

• PPO momentum crossing above the zero line

• A volume spike confirming the move

This is the type of setup we highlight not after the move—but as it’s building.

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