MSTR is down today in reaction to announcing a new bond offering: MicroStrategy shares fall after firm reveals plans to sell convertible debt to buy more bitcoin As set out last week our Feb $700 Calls have fallen from being up 1250% to "only" being up about 600% today. Once the knee-jerk reaction to the offering burns itself off, expect MSTR to make new highs (>$1315) as it will continue to mirror Bitcoin's price rise, notwithstanding today's news-event triggered decline. But for the announcement, MSTR should be up about 5% (as is GBTC), or about $50. The semi-good news is we now have a price threshold triggering a fresh Buy Signal: $1065. The semi-bad news is the poor risk:reward profile of the calls. MSTR Buy Signal Pending: Hourly (bottom of) close above $1065 Call Option: None. The March 19th $1,500C would require MSTR to rise over 50% in 31 days just to break even. Risk/reward is just not there. If taking this signal, consider buying more MSTR shares, or GBTC, instead. Note the rich premium in the calls below. Aggressive traders beware. If premiums come down, we will revisit.
