MSTR this is insanely strong and levered up. if BTC can pick up the slack and reclaim 109k no reason not to see 385-390 FridayMICROSTRATEGY stock forum
MSTR this is insanely strong and levered up. if BTC can pick up the slack and reclaim 109k no reason not to see 385-390 Friday
MSTR its ranging
MSTR aaaaaaaand it's gone
MSTR Classic ponzi scheme looks good today :D
Osis.co is showing bullish signals for MicroStrategy (MSTR), so I'm looking at going long.
MSTR), so I'm looking at going long.
MSTR impressive! Don’t worry it will pump in a few weeks before everyone drowns again! Best off to walk away for the meantime just like nvidia since December . Mike saylor doesn’t need my help- fact! This stock turning into a jokeMSTR oohhhh bumping this am! Yeah bulls your so in control 🤣🤣
MSTR Now, let's look at a more reasonable scenario if you insist on trading 5 day expiry options:Trader 2: With the stock at $360, opens a $360/$400 bull call spread by buying $360 calls and simultaneously selling $400 calls (within the same transaction) with the same 6/6 expiration. It is cheaper to buy a spread because spreads can trade down to the penny (vs. nickels for straight calls or puts); You are spreading vig across a blended trade; You get credit for the sold OTM calls to lower the price of the ITM calls you are buying; And finally market makers quote tighter spreads on combo orders because they can hedge deltas more precisely (it is a self-balancing position).
Now, in this new scenario if MSTR reaches $372.75, you've broke even ($32.25 below Trader 1's breakeven price). From $387.25 - $400, you have made 213.7% more than a long shareholder. Chances of this happening: 36.2% vs 0% for the $400 call buyer.
Can Trader 1 outperform Trader 2? Yes, but only if MSTR finishes at or above $432.25 on expiration day. At current IV (70%), probability of MSTR > $432.25 in 5 days is extremely low (~1%), barely better than a lottery ticket.
And that doesn't even account for exit friction at or near expiration. You will normally have to sell your open calls at a slight discount to get rid of them due the buyer facing a gamma risk, whereas a spread faces much less friction at exit. A call spread may even reach full value early, a day or 2 before expiration, due to price mismatches caused by volatility in the underlying long and short calls. In extreme cases I've seen them reach max value 2 weeks prior to expiration.
If you are going to trade options, do a deep dive into them. Understand all the math, terms, risks and available option structures available to trade. You can do 2 leg spreads, 4 leg spreads, vertical spreads, horizontal (calendar) spreads, diagonal spreads, straddles, strangles, iron condors, iron butterflies, ratio spreads, backspreads, collars, and synthetic long or short positions. Each has a purpose and best scenario for when to use.
Finally, remember roughly 30% of all options expire worthless, and that number jumps to OVER 90% for OTM options and short-dated speculation.
MSTR 🇺🇸 US Federal Court blocks President Trump's Liberation Day tariffs from taking effect.MSTR Before considering buying 1 week calls, consider this math:Trader 1 (mogulxtrades): Buys the $400 calls when the stock is at $360, expiry 6/6. This means the stock must climb to $405 in the next 5 trading days just to reach breakeven. Using implied volatility of 70% for MSTR and its 30d historic volatility of 50%, there is a 11.6% chance to reach break even.
But wait, there is more... This means the stock must also gain to the tune of 12.5% ($45) in those 5 days. That annualizes to a 117,500% return. Yet the options only broke even.
So to outrun the return you would get simply buying the stock, the stock will need to reach $450 in the next 5 days. Chances of that happening are 1.16%.