Okay, folks, let’s talk MicroStrategy (MSTR). Honestly, the disconnect between Bitcoin’s recent rocket ship ride and MSTR’s lackluster performance is frankly… unsettling. 10x Research is calling it, and I’m with them – it’s time to seriously consider a bearish play.
They’re recommending a put spread – buying puts at $370 and selling puts at $300, both expiring on June 27th. Why? Because, despite Bitcoin hitting all-time highs, MSTR is still chilling WAY below its previous peaks. This isn’t normal, people!
This divergence, as pointed out by 10x Research’s founder Markus Thielen, signals diminishing momentum and volatility for MicroStrategy. It basically means: the market’s getting cold feet on MSTR even as they’re still piling into Bitcoin. Frankly, it smells like a trap for those late to the party.
Let’s dive a bit deeper into why this matters. MicroStrategy is heavily leveraged to Bitcoin’s price. Typically, when Bitcoin skyrockets, MSTR should be right there with it. This is because much of the company’s value is tied directly to its Bitcoin holdings.
However, a weaker stock price despite strong Bitcoin performance suggests investors are pricing in risks. These risks could include concerns about future Bitcoin price corrections or the impact of regulatory uncertainty.
Specifically, the put spread strategy aims to profit from this expected price decrease or stagnation, without risking a massive outright investment. It’s a limited-risk, high-reward strategy if the market confirms what I and 10x Research suspect.
Basically, be smart. Don’t just blindly follow the Bitcoin hype. Look under the hood, and MSTR is flashing some seriously worrying signals. This isn’t financial advice, just a seasoned observer smelling something fishy.
