MSTR purchased $209 million worth of bitcoins
Software name MicroStrategy Inc (NASDAQ:MSTR) is plummeting in pre-market trading, last seen at $317.97 after the company revealed a sale of 592,987 shares valued at $209 million and a subsequent acquisition of 2,138 bitcoins, worth the same amount.
MSTR has been a major market mover over the past few months. Most pullbacks were captured by the $330 floor, though today's plunge brings the stock to its lowest mark since early November. For 2024, the security has jumped 422%.
Call traders have been swarming MicroStrategy stock. Data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 50-day call/put volume ratio of 2.21, which ranks in the 95th annual percentile.
For those looking to get in on the action, options may be the ideal route. The security's Schaeffer's Volatility Index (SVI) of 91% sits in the low 14th percentile of its annual range, meaning options traders are pricing in low volatility expectations. The stock tended to outperform these volatility expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 89 out of 100.