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Bitcoin's violent fluctuations: the entry point before Trump took office?
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MicroStrategy Sees Millions of Dollars of Bearish Option Trades as Stock Climbs to Record

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Luzi Ann Santos joined discussion · Oct 26 02:23
$MicroStrategy (MSTR.US)$ saw millions of dollars in bearish option positions at a time when the stock was climbing to a record.
The biggest of those bearish positions was posted at 10:22:27 a.m. Friday. An active seller collected a $37.8 million premium for call options that give the holders the right to buy 1.674 million MicroStrategy shares by close of trading today, exchange data tracked by moomoo showed. The contract was priced at $22.55 per share when the stock was trading at $242.67.
MicroStrategy Sees Millions of Dollars of Bearish Option Trades as Stock Climbs to Record
(To see MicroStrategy's options chain, click here. For the unusual option activities, click here.)
If that seller was merely closing out an existing position, he or she sold just $3 below the contract's peak. If it were a new position, the seller could have bought back the contracts at a cheaper price hours later, potentially pocketing a profit. This morning's sale occured just before the stock price's slight pull back from its intra-day record high of $245.57.
The contrarian trades were posted three days after BlackRock increased its stake in MicroStrategy to 5.2%. The world's largest asset manager reported in a filing with the Securities and Exchange Commission earlier in the week that it now holds 9.48 million shares in the software company.
MicroStrategy Sees Millions of Dollars of Bearish Option Trades as Stock Climbs to Record
MicroStrategy, which invests in Bitcoin, benefited as the value cryptocurrency surged. The largest crypto currency jumped 93% over the past year, fueling MicroStrategy's 450% rally. The five bearish option trades today were posted just as Bitcoin was nearing its intra-day high.
Amid the stock rally, technical indicators tracked by moomoo are flashing early warning signals. Twelve of the 15 gauges that you can find on the moomoo app are showing that MicroStrategy could now be overbought, and the trend may be turning bearish.
MicroStrategy Sees Millions of Dollars of Bearish Option Trades as Stock Climbs to Record
Share your thoughts on MicroStrategy and bitcoin in the comments section.



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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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