1MSTR trade ideas
I like this one long termAnyone thats a fan of BTC knows of Michael Saylor and they know that this is his company and he basically is the biggest bitcoin bull there is. This stock has a heavy correlation with BTC because of their holdings and moves more tightly with it. Because I dont think we are going below 60k again on BTC and we recently had a buy up and pull back. This in my opinion is great location to be long MSTR. I have some volume areas zoned out, but personally I only look at them as areas it might pause or to use as trade location. I really dont think what drives BTC and this stock have a great deal to do with volume zones like normal stocks do, but as crypto matures it very likely will stabilize and become more predicable.
There arent many shares of MSTR available either the float is reported as 7.04m shares and an incredible 100.93% being held by institutions. This means you're not going to see a lot of intraday volume like other stocks, in other words, not a lot of paper hands hold this. The options premium is very juicy on this, they are wide and low volume but I've been able to get filled in the ballpark of mid after working my limit orders a bit. Get ready to cancel and resubmit your order a few times. But I have been able to sell some thick premium in there.
I own some shares in long term investment accounts and trade the options for shorter term. I only make long trades on this one though. If it gets to a point where it seems BTC might back off or hit a new resistance, its really just time to let it do its thing until it comes back near the trend line to go long again.
Is Microstrategy Squeezing Toward a Breakout?Cryptocurrencies are in focus this week as Coinbase prepares its direct listing tomorrow. Meanwhile, another early mover in the space has some interesting chart patterns: Microstrategy.
Notice how MSTR has squeezed into an increasingly tight range since its big rally in February. Bollinger Band Width has contracted to 28 percent, its lowest reading since mid-December.
The narrow price action is also visible on this weekly chart. Notice the inside candle at the end of March, followed by continued moves higher:
Next, MTSTR is trying to break a downward-sloping trend line in place since late February.
Finally, MACD has been turning positive all month.
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MSTR - Weekly Inside HaramiDaily 2b bottom, Strong range bond accumulation on daily
wait for a pull back to bid long, queue 4 hour lower high
Weekly aforementioned, oversold per ichi, buying opportunity
Opportunity in long date in the money calls; July would be the earliest, yet theta and time risk premium will affect R/R
IV - 8.8%
ATR 70.47
Moderate beta at 1.45
PCR 0.35 extreme bullish sentiment
MSTR Daily Long 13CCI tlb triangle apexMSTR Daily -13 CCI has a Long signal just triggered with a cross up thru a down trnedline on CCI for an aggressive Long at 773. The continuation of Up is favored by location of two CCI triangle apices being above zeroline.
More conservative traders may wait for a breakout above the swing high dotted line, to avoid any possible continuation of zigzag retracement down to the swing low solid line or lower.
Check out 16 Apr 750 Call for 107.00, 21 May 780 Call for 145.00. Feb 20021 high was above $1300
Reversal would be a 13 CCI break down through an Up trendline (not shown, to retain clarity)