{"id":39697,"date":"2025-07-31T08:03:13","date_gmt":"2025-07-31T08:03:13","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=39697"},"modified":"2025-07-31T08:03:13","modified_gmt":"2025-07-31T08:03:13","slug":"microstrategys-market-hints-at-strongest-downside-risk-since-april","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=39697","title":{"rendered":"MicroStrategy’s Market Hints at Strongest Downside Risk Since April"},"content":{"rendered":"
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As shares in Nasdaq-listed MicroStrategy (MSTR) continue to lose ground, demand for downside protection in the bitcoin-holding company has reached its strongest in months.<\/p>\n

On Wednesday, the one-year put-call skew \u2014the difference in implied volatility between call and put options expiring in 12 months \u2014rose to 3.6%, the highest since April 17, according to data source Market Chameleon<\/a>.<\/p>\n

In other words, the demand for put options, which offer protection against price losses, relative to calls, is now strongest in over three months.<\/p>\n

AI’s take<\/h2>\n

A rising put-call IV spread means that the implied volatility of put options<\/strong> (which profit if the stock price falls) is increasing much faster, or is significantly higher, than the implied volatility of call options<\/strong> (which profit if the stock price rises). This suggests that options traders are willing to pay a much higher premium for downside protection or are betting more aggressively on a decline in MSTR’s stock price.<\/p><\/blockquote>\n

It reflects a growing apprehension or outright bearish sentiment among options traders regarding MSTR’s future performance over the next year. They are pricing in a higher probability of a significant drop in the stock.<\/p><\/blockquote>\n

A put option gives the purchaser the right, but not the obligation, to sell the underlying asset, MSTR, at a predetermined price on or before a later date. A put buyer is implicitly bearish on the market, while a call buyer is bullish.<\/p>\n

MSTR is the largest publicly listed bitcoin holder in the world, boasting a coin stash of 628,791 BTC ($74.7 billion). The company has been aggressively buying BTC as a balance sheet asset for five years in a trend-setting move for corporates around the world.<\/p>\n

However, its stock price has been struggling lately. MSTR has dropped by over 14% to $292 in two weeks, closing just below the 50-day simple moving average (SMA) on Wednesday.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As shares in Nasdaq-listed MicroStrategy (MSTR) continue to lose ground, demand for downside protection in the bitcoin-holding company has reached its strongest in months. On Wednesday, the one-year put-call skew \u2014the difference in implied volatility between call and put options expiring in 12 months \u2014rose to 3.6%, the highest since April 17, according to data […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-39697","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/39697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39697"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/39697\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}