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Report: It is recommended to adopt a put options spread strategy when the MSTR stock price diverges from the Bitcoin price.
PANews reported on May 26 that according to CoinDesk, a report released by 10x Research last Friday pointed out that despite the record high price of Bitcoin, the share price of MicroStrategy (MSTR) has stagnated, showing that investor enthusiasm has waned. The agency recommends using a put spread strategy at a time when the MSTR share price diverges from the price of Bitcoin. This is done by buying a $370 put option expiring on June 27 and selling a $300 put option expiring on the same day. If the MSTR stock price falls to $300 or less by June 27, the strategy will maximize profits. Put options protect against the risk of falling prices, and the maximum loss is limited to the initial cost. Last Friday, MSTR's stock price fell by 7% to $369. MicroStrategy holds 576,230 Bitcoins, making it the public company with the largest holdings. The stock has diverged from the Bitcoin price, raising market concerns. Thielen believes this reflects the gap between Bitcoin's strength and MSTR's weakness, indicating a decline in investor enthusiasm. This strategy can also hedge against potential Bitcoin weakness.