MSTR Options
MicroStrategy Incorporated Options Chain, Implied Volatility & Greeks
Comprehensive options market data for MicroStrategy Incorporated (MSTR). Explore implied volatility patterns, options chain liquidity, gamma exposure levels for the Bitcoin treasury company.
MSTR Options at a Glance
What's Covered in This Guide
1 About MicroStrategy Incorporated (MSTR)
MicroStrategy is a business intelligence software company that has transformed into the primary publicly-traded Bitcoin treasury company. Under CEO Michael Saylor, MSTR has accumulated over 200,000 Bitcoin, making it a leveraged proxy for Bitcoin price exposure. The stock trades at significant premium/discount to NAV based on Bitcoin sentiment.
Company Profile
Key Dates
MSTR is the largest corporate holder of Bitcoin and trades as a leveraged Bitcoin proxy. Michael Saylor has become a prominent Bitcoin advocate, and the company regularly issues debt/equity to acquire more Bitcoin.
2 MSTR Options Market Overview
MSTR options are extremely active with massive retail and institutional interest. Volume correlates strongly with Bitcoin moves, often exceeding the stock's market cap in notional value.
Liquidity Assessment: Excellent
MSTR options liquidity is exceptional. Volume often rivals mega-cap tech stocks during Bitcoin moves.
3 MSTR Volatility Profile
MSTR implied volatility is among the highest of any major stock due to leveraged Bitcoin exposure. IV regularly exceeds 100% and can spike above 200% during Bitcoin volatility.
Earnings Impact
Earnings have minimal impact - Bitcoin moves dominate. IV tracks Bitcoin volatility, not earnings calendar.
Historical Volatility vs IV
IV typically trades near realized volatility given how volatile MSTR actually is.
Term Structure
Often flat or inverted as Bitcoin moves are unpredictable in timing.
MSTR Gamma Exposure (GEX)
Gamma Exposure analysis for MSTR shows extreme positioning with potential for gamma-driven moves.
Typical GEX Profile: MSTR gamma positioning is heavily skewed bullish. Call gamma dominates.
Key Levels: Strike clustering at round numbers. Massive open interest creates significant gamma effects.
Dealer Hedging: Dealer hedging can amplify moves. Heavy call buying creates self-reinforcing rallies.
4 Common MSTR Options Strategies
These are strategies commonly used by traders on MSTR options, based on typical market characteristics. This is not investment advice.
Leveraged Bitcoin bull bets. Extremely expensive but can pay off massively in Bitcoin rallies.
Essential for managing extreme premium costs. Spreads make MSTR directional trades affordable.
Extremely rich premiums but high assignment risk. Bitcoin believers use for income while holding.
Collect massive premiums from elevated IV. Risk is significant share assignment during Bitcoin crashes.
Play for big moves in either direction. MSTR regularly exceeds implied moves.
Key Considerations for MSTR Options
- MSTR is effectively a leveraged Bitcoin ETF with software business attached
- Stock trades at premium/discount to Bitcoin NAV based on sentiment
- Michael Saylor's strategy involves continual Bitcoin accumulation
- Company issues convertible debt and equity to fund Bitcoin purchases
- Options premiums are extreme but often justified by realized volatility
- Correlation with Bitcoin is very high but not perfect
Frequently Asked Questions: MSTR Options
How liquid are MSTR options?
MSTR options are extremely liquid with average daily volume exceeding 200,000 contracts. Volume often rivals mega-cap tech stocks during Bitcoin rallies.
What is MSTR's typical implied volatility?
MSTR implied volatility typically ranges from 60% to 250%. Normal conditions see IV between 80-120%, among the highest of any major stock.
Why is MSTR considered a Bitcoin proxy?
MicroStrategy holds over 200,000 Bitcoin and Michael Saylor's strategy is to accumulate more. The stock trades primarily based on Bitcoin price movements and sentiment.
Why are MSTR options so expensive?
MSTR options are expensive because the stock is extremely volatile due to leveraged Bitcoin exposure. However, the high premiums are often justified by realized volatility.
Is MSTR better than Bitcoin ETFs?
MSTR provides leveraged Bitcoin exposure but with company-specific risks and premium/discount to NAV. Bitcoin ETFs like IBIT offer more direct, unleveraged exposure.
What is the best time to trade MSTR options?
The most liquid trading hours for MSTR options are typically during regular market hours (9:30 AM - 4:00 PM ET), with highest volume around market open and close.
How do I calculate MSTR option Greeks?
Use our free Options Calculator or Greeks Heatmap tool to calculate delta, gamma, theta, vega and other Greeks for MSTR options across all strikes and expirations.
What happens to MSTR options at expiration?
In-the-money MSTR options are typically auto-exercised at expiration. Out-of-the-money options expire worthless. Consider closing positions before expiration to avoid assignment risk.
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