MicroStrategy announced a 10-for-1 stock split
MicroStrategy Inc (NASDAQ:MSTR) stock is surging today, after the Bitcoin buyer announced a 10-for-1 stock split, making the shares more accessible to investors and employees. At last glance, the stock was up 8% at $1,411.25.
This move follows a downturn for Bitcoin (BTC) and MSFT, after both hit peaks in March. MicroStrategy stock is on track for its fourth-straight daily win today, after bouncing off emerging support at the $1,200 level. Year to date, the equity is outperforming with a 121.7% lead.
Options bulls are chiming in after the news, with 16,000 calls exchanged so far -- triple the intraday average call volume -- in comparison to just 4,665 puts. The weekly 7/12 1,600-strike call is the most active contract, followed by the 1,500 call in the same series, with new positions opening at both.
These options are reasonably priced at the moment, too. MSTR's Schaeffer's Volatility Index (SVI) of 79% ranks in the low 19th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.