BLUE LINE TRADING SYSTEM Weekend Update Special Report HYPE, PURR and a Special Situation September 19, 2026 PURR daily: a 9.82% advance to $14.09, with a post-close indication near $14.25. The setup is simple: HYPE has broken higher, PURR is attempting to confirm, and the December $14 calls offer liquid, defined-risk leverage if the move continues. The Special Situation PURR may be evolving from an interesting crypto-related stock into a genuine special situation. Friday delivered the combination we look for: a fundamental catalyst already embedded in the company, a confirming move in the underlying asset, and a stock chart pressing through a clearly defined resistance level on expanding volume. In plain English: What is HYPE, and how is it related to PURR? HYPE is the native digital token of Hyperliquid, a high-performance blockchain and decentralized trading platform. PURR is the Nasdaq-listed stock of Hyperliquid Strategies Inc., a company whose primary strategy is to accumulate and hold HYPE tokens. It also stakes some of those tokens to earn additional returns and seeks to increase the amount of HYPE represented by each PURR share over time. For investors who prefer to trade through a traditional brokerage account, PURR provides stock-market exposure to HYPE—somewhat like the way Strategy, formerly MicroStrategy, provides exposure to Bitcoin. In simple terms: • If HYPE rises, the value of PURR’s principal assets rises, which should generally benefit the stock. • PURR can trade above or below the underlying value of the HYPE it owns—known as a premium or discount to net asset value. • The company can issue shares to acquire more HYPE or repurchase shares when appropriate. Either action can change the amount of HYPE represented by each share. • PURR will not necessarily move in lockstep with HYPE. Its stock price is also affected by investor sentiment, share issuance, staking returns, management decisions and general market conditions. The simplest way to think about it: HYPE is the underlying crypto asset; PURR is a publicly traded company designed to give stock-market investors leveraged exposure to the growth—and the risks—of the Hyperliquid ecosystem. Hyperliquid Strategies (PURR) is not merely associated with HYPE. Its stated strategy is to accumulate HYPE, stake it, optimize yield and increase HYPE exposure per share. That makes PURR a publicly traded, leveraged expression of the Hyperliquid ecosystem - with all the opportunity and all the volatility that description implies. Confirmatory Analysis: the story identifies the candidate; price confirms the timing. On Friday, HYPE and PURR began confirming one another. I scrapped the initial Weekend Update to bring this situation to my subscribers' attention today. There is no guarantee this will unfold as anticipated, but if it does, we may be talking about this trade for years, as we still do about the TSLA LEAPS purchase from December 2019. From PRO Trade to Premium Position This opportunity did not begin with Friday’s 9.82% rally. The PRO Service bought the PURR October $12 call on August 25 at $1.55, as PURR was completing its first major advance. Two days later, the option reached $3.20 - a best gain of 106.45% - and activated our trailing-stop discipline. It closed Friday at $2.69, with those calls still ahead 73.55% and with the trailing stop protecting a gain of 53.23%. PRO Service: October $12 call entered August 25 at $1.55; current gain 73.55%, after reaching 106.45%. That trade gives us something more valuable than hindsight: it shows that PURR was already on our radar before the current breakout attempt. The PRO position captured the first leg. Late Friday’s Premium Service purchase of the December $14 call at $2.63 is designed to participate in the next leg, while adding nearly two months of duration beyond the October expiration. This is not a duplicate recommendation made simply because the stock rose. It is a deliberate progression. The PRO service accepted the earlier and more aggressive entry. The Premium service waited for HYPE to strengthen, PURR to complete its correction, and price to return to the August breakout level. The two positions now express the same thesis across different time horizons. HYPE Leads the Way HYPE daily: closed at $92.16, up 8.31%, after successfully retesting its prior breakout zone. HYPE first cleared the old $76-$79 resistance zone in August, then spent several weeks consolidating above it. The recent pullback tested that former ceiling from above and held. Friday’s $92.16 close - near the session high of $92.71 - turns that successful retest into a potential launch point for the next advance. Friday’s strength also reflected growing participation beyond the price chart. HYPE moved into price discovery above its previous all-time high as derivatives volume and open interest increased sharply. The former $89–$90 resistance area now becomes the first important support zone. If HYPE can hold that breakout—particularly on a retest—the psychological $100 level becomes the next test and the fundamental backdrop for PURR should continue to strengthen. Unlike PURR, HYPE trades around the clock, including nights and weekends. Its price action while the stock market is closed may therefore provide an early indication of the environment PURR will face at its next opening. Continued strength—particularly a hold above the $89–$90 breakout zone—would support the thesis. A sharp reversal below that area would be an early warning. Weekend crypto trading can be volatile, however, so the more meaningful evidence will be whether the move holds as liquidity returns. The Elliott Wave roadmap shown on the chart is not a promise, but it provides a useful framework. A sustained advance from the wave-four area would open the door to a wave-five move. The chart marks approximately $133.65 as an intermediate Fibonacci objective and $188.43 as a more aggressive extension. Those levels are scenarios, not predictions; the important evidence today is the hold above former resistance and the strong close. PURR Is Attempting to Confirm PURR daily: the stock closed directly on the August high/resistance area as volume accelerated. PURR’s chart is one step behind HYPE - and that may be where the opportunity lies. The stock surged 9.82% Friday, closed at $14.09, and traded as high as $14.47 after the bell. More important than the percentage gain, PURR challenged the August high near $14.00 after carving out a three-week correction and holding its rising trendline. A close is better evidence than an intraday print, but one day does not complete the job. The ideal confirmation would be continued strength above roughly $14.00-$14.25, followed by the ability to hold that breakout on a retest. If that occurs, the chart’s next major Fibonacci reference is approximately $23.62. Its more aggressive wave-five extension is near $37.55. Where Bitcoin Fits Bitcoin weekly chart: +6.11% to $81,491.67 testing the upper boundary of a long declining channel. Bitcoin may be providing the broader risk-on backdrop. Its weekly rebound from rising long-term support has carried price back toward the upper boundary of a declining channel. A decisive weekly break above that band would strengthen the entire digital-asset complex and could add fuel to HYPE and PURR. The distinction matters: HYPE is currently acting stronger than Bitcoin, and PURR’s direct fundamental linkage is to HYPE, not BTC. Bitcoin should therefore be treated as confirmation and liquidity backdrop - not as the sole reason to own PURR. If Bitcoin is rejected at resistance, HYPE and PURR will have to prove they can continue on their own. Why the PURR December $14 Call Stands Out December 18, 2026 calls at Friday’s close. The $14 strike combined the day’s heaviest volume with substantial open interest and a tight market. The December $14 call sits near the money and offers a useful balance of leverage, liquidity and time. At the captured quote, it was bid at $2.75 and offered at $2.90, with 2,564 contracts traded and 10,761 contracts of open interest. Its 0.5870 delta means it should initially participate in a little more than half of a comparable move in PURR, although delta will change as price and time change. Feature December $14 Call Why It Matters Watch-Out Expiration Dec. 18 - 91 days Time for the thesis to develop Time still decays every day Market $2.75x $2.90 Only a $0.15 spread Use a limit order Liquidity 2,564 volume / 10,761 OI Easier entry and exit OI is not directional proof Delta 0.5870 Meaningful stock participation Not a stock substitute Implied volatility 99.848% Large moves are expected IV contraction can hurt Cost / risk $275-$290 per contract Defined maximum loss The full premium can be lost The Premium Service established a position in the December $14 call late Friday at around $2.63. At that cost, the expiration breakeven is $16.63. Before expiration, the option can be profitable below that level because it will still retain time value. The purchase also extends the PURR campaign beyond the PRO Service’s October expiration, allowing more time for a possible HYPE-driven revaluation to develop. What the Leverage Can Look Like The following examples show intrinsic value at expiration for a call purchased at $2.63. They deliberately exclude any remaining time value because none exists at expiration. PURR at Expiration Call Value Profit / (Loss) Return on $2.63 Context $14.00 or lower $0.00 ($2.63) -100% Breakout fails $16.63 $2.63 $0.00 0% Expiration breakeven $18.00 $4.00 $1.37 +52% Moderate follow-through $20.00 $6.00 $3.37 +128% Strong continuation $23.62 $9.62 $6.99 +266% Chart’s 100% extension $30.00 $16.00 $13.37 +508% Aggressive wave-five path The Trade Plan · Confirmation: PURR holds above the $14.00-$14.25 breakout area. A successful retest is stronger evidence than simply chasing a gap higher. · Initial risk: the standard -50% option stop remains in force. From $2.63 that equates to approximately $1.32, subject to execution and the bid-ask spread. · Trend failure: a decisive close back below the breakout area, especially if HYPE also loses its $76-$79 support zone, would weaken the thesis even if the option has not yet reached its mechanical stop. · Winning trade: once the option reaches +100%, the standard trailing 50% stop takes over. The objective is to give an emerging wave room to run without surrendering a major winner. · Position size: high implied volatility argues for a starter position, not an oversized bet. Additional contracts should be earned by confirmation, not justified by enthusiasm. What Could Go Wrong · A false breakout in PURR sends the stock back into its prior range. · HYPE reverses after Friday’s surge or fails to hold its former breakout zone. · Bitcoin is rejected at weekly channel resistance and crypto liquidity contracts. · PURR issues shares or otherwise dilutes per-share HYPE exposure; a rising token price does not guarantee a rising stock price. · Implied volatility falls. With IV near 101%, the option can lose value even if PURR merely moves sideways. Bottom Line This is exactly the kind of setup Confirmatory Analysis is designed to find. The PRO Service identified the first move on August 25 and remains up 73.55%. The Premium Service has now entered the December $14 call as HYPE breaks higher and PURR challenges its August high on expanding volume. The fundamental connection is direct: PURR is built to accumulate and productively deploy HYPE. Bitcoin may be adding a broader crypto tailwind just as both charts turn higher. The December $14 call is not cheap - but it is liquid, near the money, and gives the special situation 91 days to develop. The opportunity lies in continuation above $14.00-$14.25. The discipline lies in refusing to confuse a promising breakout with a guaranteed one. If PURR confirms, the $23.62 chart objective would be enough to produce substantial leverage in the December $14 call. If it fails, our defined-risk structure and mechanical stop are already in place. Cut the losers. Press the winners. Let the trend do the heavy lifting. ----- Sources and Notes Company strategy and treasury description: Hyperliquid Strategies investor website, https://hypestrat.xyz/dashboard (accessed September 18, 2026). Protocol economics: Financial Times reported that Hyperliquid directs 99% of trading-fee revenue to HYPE repurchases and had repurchased and cancelled approximately $1.3 billion of HYPE since launch (August 31, 2026). Hyperliquid Price Prediction: HYPE Breaks $90, Eyes $100Market data: TradingView charts and Schwab option-chain snapshot supplied by the author, September 18, 2026. Prices, Greeks and implied volatility change continuously. Disclosure: Options involve substantial risk and are not suitable for every investor. This report is for educational and informational purposes and is not individualized investment advice. The PRO Service owns PURR October $12 calls and the Premium Service owns PURR December $14 calls.
