As shares in Nasdaq-Listed Micro Strategy (MSTR) continue to lose the soil, the demand for downward protection in Bitcoin-Holding Company has reached its strongest in months.
On Wednesday, the one-year-old skewed-skewed difference in implicit volatility between calls and put options expiring in 12 months-to 3.6%, the highest since April 17, according to Data Source Market Chameleon.
In other words, the demand for putting options that offer protection against price losses compared to calls is now strongest in over three months.
AI’s Take
An increasing Put-Call IV spread means that the implied volatility of Set Settings (which surplus if the stock price falls) increases much faster or is significantly higher than the implied volatility of Call options (What a profit if the stock price rises). This suggests that option dealers are willing to pay a much higher premium for protecting the disadvantage or is focusing more aggressively on a fall in MSTR’s share price.
It reflects a growing fear or direct bearish atmosphere among opportunities to get opportunities for Mstr’s future performance over the next year. They prices in a greater likelihood of a significant decrease in the stock.
A put -setting gives the buyer the right, but not the obligation, to sell the underlying asset, Mstr, at a predetermined price of or before a later date. A PUT buyer is implicit Bearish on the market while a call buyer is bullish.
Mstr is the largest publicly listed bitcoin holder in the world and boasts a coin stash of 628,791 BTC ($ 74.7 billion). The company has aggressively bought BTC as a balance -active for five years in a trend -setting step for businesses around the world.
However, its share price has struggled recently. Mstr has fallen by over 14% to $ 292 in two weeks and closes just below the 50-day simple sliding average (SMA) Wednesday.
