I'm short MSTR, it's not a large position, actually less than 1% of my portfolio, I will be adding in more short positions on the MSTR etfs soon. I did sell some puts on MSTZ for very heavy credits, just sold another today for December. The premiums are very high. Will be adding more throughout the months ahead if MSTZ continues to fall.
And that's exactly what I'm saying. It makes zero sense how a company can just buy bitcoin throw it on the balance sheet and use it for a way to grease its earnings, look at last quarters earnings, down right bad...
I've been trading MSTR shares again over the last few days and doing well. My complex strategy is to check BTC's movement, if it's up and MSTR is inching up I jump in and get out at 3- 5%; if it's down I do nothing.
Microstrategy's outperformance vs. BTC is pretty remarkable. I believe since mid-September MSTR is up 50% and BTC is up like 5%. Usually MSTR is in line with BITX or 2 x BTC. There has to be convergence in price, either BITX goes up or MSTR goes down.
That's what Kerrisdale was betting on, buying bitcoin and shorting mstr, they may have blown up recently TradFi thinks it has to be this way, but the truth is that the market is forward looking, the amount of bitcoin mstr has acquired and the pace that they have acquired it using convertible debt, selling shares and their operating income has proven that they will be in a frantic race And the market may be pricing in a higher bitcoin price in the future And the market rewards mstr with a higher share price and they do not let off the gas, being more aggressive >3x NAV, Apple is 30, why not 10x NAV for mstr? There is no limit that says it has to be a 1x or lower The bond investors love mstr convertible debt, they are the best performing corporate debt trading like tech stocks, so I read When the ducks are quacking, feed them
Be careful, friend, the market makers are paying you high premium on your mstz puts because they might believe mstz will go much lower near 0 Try to look for the sucker in the table before celebrating it's a great premium the market makers are paying
I'm not worried. It's not a large percentage of my portfolio Will short MSTU once MSTR jumps above 225 to 250. I may start a small position. MSTR up 60% in a month based off of bitcoin.....eventually this will break, why no other publicly traded company is doing the same thing raises alot of questions.