When we first added MSTR to our long term portfolio just after Thanksgiving I indicated that we would be trading MSTR options in the PRO Service. Since that time the spread between bid and ask has been too wide for trading, i.e., $1,000 or more between bid and ask for a $5,000 call. That may be changing. This morning with Bitcoin flirting with $40K, MSTR calls are trading with manageable spreads of about $500 and I was able to buy the Feb $700C mid-way between a $300 spread. Game on. MSTR generated a Buy Signal on the Open today at $567.35.It's high print has been $593.82. At the same time, Bitcoin is trading at $39,820 after touching $40,100 earlier this morning. A break-out to new highs on either one sets up a high risk high reward option trade as follows: Short-Term Buy Signal: MSTR above $600 (any time) Option: Feb 19th $700C (currently bid $40.80 - ask $42.50) If triggered we will be taking this trade in to the PRO portfolio. For most portfolios already in GBTC and/or Bitcoin itself, this kind of trade takes on unnecessary risk, but also unlimited reward. There are 36 days until February expiration...36 days ago MSTR was trading under $300.
