10X Research Advocates Bearish Options Strategy for MSTR as It Diverges from Bitcoin Price Surge
10X Research suggests a bear put spread on MicroStrategy as its stock shows signs of investor disinterest compared to Bitcoin's recent highs.
10X Research recommends a bearish options strategy focusing on MicroStrategy (MSTR) as its stock diverges from the recent price trends of Bitcoin.
Key Points:
- 10X Recommends a bear put spread for MSTR amid its price divergence from Bitcoin.
- This strategy aims for profit if MSTR falls to $300 or lower by June 27, minimizing potential losses.
Despite Bitcoin reaching new highs, MSTR’s stock has shown signs of stagnation, stemming from a decrease in investor enthusiasm. According to a report sent to clients, Thielen advised a bear put spread involving a long position in $370 put options and a short position in $300 puts, both expiring on June 27.
MSTR Stock Chart
Image showing the performance of MSTR against Bitcoin.
When MSTR dipped 7% to $369, concern arose as it maintained a significant gap from Bitcoin’s recent price surge. As of last week, Bitcoin reached over $110K, while MSTR only climbed to around $440, avoiding its peak of $543 last November. Thielen stated, “This trade captures the growing disconnect between Bitcoin’s strength and MicroStrategy’s fading momentum and volatility.”
The divergence indicates a fading excitement among investors regarding MSTR, matching a historical pattern noted during previous Bitcoin price peaks. Observing such market behaviors can guide strategic financial maneuvers, especially for those vested in cryptocurrency-related investments.
