MicroStrategy Stock Soars After Loading Up on More Bitcoin

The equity has shed roughly 50% in the last three months

Digital Content Manager
Feb 1, 2022 at 9:56 AM
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MicroStrategy Incorporated (NASDAQ:MSTR) is up 5.8% at $389.50 at last check, after the business intelligence and cloud name announced it bought about 660 bitcoins for about $25 million in cash, or roughly $37,865 per bitcoin, between Dec. 30 and Jan. 31. This brings the company's bitcoin sum to 125,051, as Founder and CEO Michael Saylor continuously invests in the cryptocurrency

MicroStrategy stock had been trending lower on the charts since November, culminating in a Jan. 28, one-year low of $307.19. Today's pop has MSTR eyeing its first close above the 10-day moving average since late-December, but overhead pressure at the $400 level still looms. Over the last three months, MSTR has shed about 50%.

Analysts remain optimistic, with all but one of the four in question carrying a "strong buy" rating. Plus, the 12-month consensus target price of $742 is a massive 101.6% premium to last night's close. Meanwhile, short interest rose 5.6% in the most recent reporting period, and the 1.70 million shares sold short make up 20.3% of MSTR'S available float. 

The options pits are firmly bearish, according to the security's 10-day put/call volume ratio of 1.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 94% of readings from the last year, and indicates puts have rarely been more popular.

It is also worth noting the equity' Schaeffer's Volatility Scorecard (SVS) sits at 88 out of 100. This means MSTR has exceeded options traders' volatility expectations during the past year.


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