MicroStrategy Shares Take Roller Coaster Ride, Driving Options Volume Higher
$MicroStrategy(MSTR)$
The software company, whose business strategy includes buying and holding Bitcoin, saw its shares jump as much as 9.6% to an intra-day record high of $444.94 after $Bitcoin (BTC.CC)$ soared past $103,000. That rally almost pushed the $450 call options in-the-money just a day before expiration.
The party didn't last. While Bitcoin held on to its gains, MicroStrategy shares started retreating about an hour into the trading day, declining as much as $3.4% to $392.12 before paring the loss. That whipsaw pushed the call options deeper out of the money, helping fuel the sell-off.
By 12:30 p.m. in New York, more than 22,000 call options that give the holders the right to buy MicroStrategy shares at $450 by tomorrow changed hands, almost triple the open interest. The price of that contract tumbled 31%, reversing a gain of as much as 302% earlier in the day.
In total, 478,470 MicroStrategy call and put options across 19 expiration dates stretching through Jan. 15, 2027 were traded so far. That landed the software company in the third spot for the most active stock options, behind $NVIDIA Corp(NVDA)$
Even after MicroStrategy's decline Thursday, the stock is still up 526%, more than triple Bitcoin's 141% rally. Is MicroStrategy worth that premium over Bitcoin? [Thinking]
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