TSLA
Tesla
-- 443.130 NVDA
NVIDIA
-- 135.160 AMD
Advanced Micro Devices
-- 120.937 QUBT
Quantum Computing
-- 18.445 MU
Micron Technology
-- 88.210 
Bitcoin's Record-Breaking Rally Above $94,000 Fueled MSTR, MARA Options Trading
$Bitcoin (BTC.CC)$'s march to a fresh all-time fueled increased interest in stocks linked to the cryptocurrency, spurring heavier options trading.
The largest cryptocurrency advanced to a new all-time high as $94,057 in New York Friday afternoon amid a surge demand from buyers including $MicroStrategy (MSTR.US)$ and issuers of exchange traded funds. The software company whose business strategy includes buying and holding Bitcoin said Tuesday it is offering $1.75 billion in convertible senior notes to raise money to acquire more of the cryptocurrency.
That adds to demand for Bitcoin at a time when exchange traded funds backed by the cryptocurrency are already attracting more funds. Assets held in the 11 spot Bitcoin ETFs that launched in January have already reached $97 billion, Bloomberg Intelligence analyst Eric Balchunas said in a note Nov. 15. That's more than three-quarters of the $128 billion held in gold ETFs, he said.
Bitcoin ETFs' appeal to investors as a store of value, and traders' attraction to the asset class due to its volatility could help the funds "surpass and potentially triple those of gold ETFs in the next three to five years," Balchunas said.
Nasdaq's plan to list options on the largest Bitcoin ETF as early as today is icing on the cake. That move could drive volumes and assets into the product, Balchunas said on Bloomberg's ETF IQ show that aired Monday.
MicroStrategy shares advanced 8% to $416.38, pushing many of its put options out of the money and triggering the sell-off in those contracts. The most active contract was the put option that give the holders the right to sell the stock at $220 in three days. The price of that contract tumbled by more than half amid increasing probably that it would expire worthless, given that the stock is already trading at almost $200 above that strike price.
More than 391,00 call and put options tied to MicroStrategy changed hands so far across 17 expiration dates that stretch through Jan. 17, 2025, data tracked by moomoo showed. That made MicroStrategy the fifth most active stock option, behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$, $Super Micro Computer (SMCI.US)$ and $Palantir (PLTR.US)$.
$MARA Holdings (MARA.US)$, the biggest U.S. listed Bitcoin miner by market capital, is also enjoying the tailwind from the cryptocurrency's rising prices. The stock gained 13% to $20.50, pushing many of its call options closer to being in-the-money, and boosting volume. The busiest trading involved call options that give the holders the right to buy the stock at $20 in three days, with more than 15,700 contracts changing hands so far.
Marathon mined 717 Bitcoin in October, taking its holdings to 27,562 Bitcoins, the most among publicly traded miners, according to a JPMorgan note Monday. (To see Marathon's options chain, click here.)
Share your thoughts on Bitcoin, MicroStrategy and Marathon Holdings in the comments section and let us know what stock options you're watching. Are you monitoring the action in Bitcoin ETF options?
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Optionsbefore engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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103185773 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Coach Donnie : Breaking records with BTC let’s GOOO $Bitcoin (BTC.CC)$
103356238jenny tan :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Adrianlim90 : 1
OZ the Great :
102875548 : i think the recent sell off is a real indication of the bitcoin buyer/seller...
