MSTR is a downgrade risk as Bitcoin collapses
Crypto treasury and software stock Strategy Inc (NASDAQ:MSTR) was last seen trading down 10.8% at $158.95, plummeting alongside crypto leader Bitcoin (BTC), as it slides further below $87,000. In response, Strategy this morning cut its full-year outlook for 2025, and announced plans to create supportive dividend payments as a reserve. MSRT has closed 11 of its past 15 sessions lower and is off 45% for 2025.
For the fourth-straight week, Strategy made its way onto Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that attracted the highest options volume over the past two weeks. In the last 10 days, MSTR saw 4,232,270 calls and 2,811,201 puts exchanged. Most popular during this time frame was the weekly 11/28 200-strike call, with the November 210 call coming in closely behind.
MSTR hit an 18-month low of $155.61 earlier today, and is now down 45% in 2025. Of the 15 brokerages covering the stock though, 13 maintain "buy" or better ratings, with zero "sells" on the books. Plus, the consensus 12-month price target of $529.18 is a 232% premium from its current perch. Analysts rushing to adjust their targets could weigh on the equity.
Options are the most affordable way to go. This is per the stock's Schaeffer's Volatility Index (SVI) of 75%, which stands higher than only 15% of readings from the past 12 months. In simpler terms, option traders are pricing in relatively low volatility expectations.