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Message
re: Anyone buying MicroStrategy Inc (MSTR)?
Posted on 12/18/24 at 1:50 pm to BCreed1
Posted on 12/18/24 at 1:50 pm to BCreed1
Got it. Noted on his dislike for it. Thx
I am not. I'm really wet behind the ears here so haven't really ventured into anything other than buying stocks straight out to get my feet wet, and learn. Why do you ask?
Ideas of why this MSTR isn't caring for the announcement?
I am not. I'm really wet behind the ears here so haven't really ventured into anything other than buying stocks straight out to get my feet wet, and learn. Why do you ask?
Ideas of why this MSTR isn't caring for the announcement?
2
Posted on 12/18/24 at 1:56 pm to HagaDaga
quote:It’s not light material. This isn’t GameStop. Microstrategy is a hostile hedge against the collapse of fiat currency. That’s their business model.
You nerds have me completely lost when you get into the weeds. Such a love/hate thing for me as I'm trying to learn, but so much is way over my head.
Posted on 12/18/24 at 2:02 pm to beaverfever
quote:
It’s not light material. This isn’t GameStop. Microstrategy is a hostile hedge against the collapse of fiat currency. That’s their business model.
No it is not. And why it intrigues me, as I'm trying to learn. Thanks for the input, as it is helpful as I start putting pieces together on how to look at this stock.
Posted on 12/18/24 at 2:11 pm to HagaDaga
quote:
I am not. I'm really wet behind the ears here so haven't really ventured into anything other than buying stocks straight out to get my feet wet, and learn. Why do you ask?
I ask because I do, and it helps when a stock dips. I'm in MSTU again at $15.01. I sold a call for $73. It helps offset losses and enhances gains.
quote:
Ideas of why this MSTR isn't caring for the announcement?
Previous posters are correct. It resets daily
Posted on 12/18/24 at 2:13 pm to BCreed1
quote:Any commentary I make on MSTR is neutral to bitcoin.
Big Scrub is a "anti" MSTR and BTC.
Posted on 12/18/24 at 2:17 pm to HagaDaga
quote:You're reading too much into statistical noise. MSTR vol is like 150 and bitcoin vol is like 50 - even though MSTR is barely levered at all. This should be a signal to you that the whole thing is nonsense and you should stay away from it (or, at the very least, treat it purely as speculation and not as investment).
Ideas of why this MSTR isn't caring for the announcement?
The only quasi-rational way to play this name is to sell vol. If I were forced to do something in size, it would likely be sell MSTR topside vol and go long BTC. OR If I could get an allocation on the converts, buy those and then sell 2 year vol against them.
We already know the stock is overvalued by $50-70B. Somebody is eventually going to collect that difference.
Posted on 12/19/24 at 10:14 pm to Big Scrub TX
Appears I am a “long term investor” in Mstr and mstu now
Posted on 12/19/24 at 10:42 pm to Big Scrub TX
But yet it keeps climbing and will continue to climb to be one of the largest companies market cap wise before it’s all said and done.
Posted on 12/19/24 at 11:25 pm to LSUSLU106
quote:
But yet it keeps climbing and will continue to climb to be one of the largest companies market cap wise before it’s all said and done.
It's down more than 30% from its peak and it's like 2.5 - 3.5% the market cap of the largest companies. Dream on.
Posted on 12/20/24 at 6:59 am to jefforize
quote:
Appears I am a “long term investor” in Mstr and mstu now
Me too man, me too.
Can only hope the January "BTC buying hold" happens and really does helps A LOT. I can only assume saylor is licking his lips right now looking at one last big purchase before Dec 26. I believe Dec 26 is the 40 day mark before MSTRs Feb 4th earnings release.
Posted on 12/20/24 at 7:54 am to HagaDaga
Good time to average down my position by buying more ?
?Posted on 12/20/24 at 8:01 am to meeple
quote:
Good time to average down my position by buying more
I would have, but of course I wasted the reserve I had for just this kind of moment on MSTU right before it tanked. So now I'm stuck on waiting it out until I build up my reserves. Lessons learned I guess.
Posted on 12/20/24 at 8:56 am to HagaDaga
quote:
I would have, but of course I wasted the reserve I had for just this kind of moment on MSTU right before it tanked. So now I'm stuck on waiting it out until I build up my reserves. Lessons learned I guess.
Lessons:
1- All things go up and down. Even the great and powerful NVDA. Don't sweat it.
2- Learn to sell calls, that way you make cash to reinvest. Must have 100 shares
EXAMPLE... MSTR. It's at $329 right now. depending on entry or average cost, you pick out a call above it. The $345 strike for this week is $135. For next week, it's worth over $1000!
The math to that is easy to figure. $1000 + $1600 due to the run up to where you would be assigned (means the stock reach that strike price and now you have to sell them 100 shares at that strike price)= $2600
Now if it does not reach the strike price, You keep all of the premium (The $1000). You keep the stock and can sell another for the following week....
This post was edited on 12/20/24 at 8:59 am
Posted on 12/20/24 at 9:08 am to BCreed1
Thanks for that example. Apologies for not responding to your other response to me on Calls. I meant to come back and didn't.
I'm barely a couple months into really doing this with real money (just a reserve I built up over the last year or so specifically to teach myself trading)
So yeah I'm definitely in the "diamond hands" phase of my early learning.
I'm going to have to put Calls up on my list of what to learn next. See if I can find good "teach me like I'm 5" videos on yt to see how to operationally do them.
So I would be selling the calls backed by the shares I own, right? I don't have that much of MSTR, but I do of MSTU. Able to do this with ETFs?
I'm barely a couple months into really doing this with real money (just a reserve I built up over the last year or so specifically to teach myself trading)
So yeah I'm definitely in the "diamond hands" phase of my early learning.
I'm going to have to put Calls up on my list of what to learn next. See if I can find good "teach me like I'm 5" videos on yt to see how to operationally do them.
quote:
Learn to sell calls, that way you make cash to reinvest. Must have 100 shares
So I would be selling the calls backed by the shares I own, right? I don't have that much of MSTR, but I do of MSTU. Able to do this with ETFs?
This post was edited on 12/20/24 at 9:11 am
Posted on 12/20/24 at 9:21 am to Big Scrub TX
quote:
It's down more than 30% from its peak and it's like 2.5 - 3.5% the market cap of the largest companies. Dream on.
Ahh yes the short minded perspective while Bitcoin is trading at a whopping 95k
Posted on 12/20/24 at 9:26 am to BCreed1
quote:
Lessons:
Please explain to me like I’m 8. If you just did, then 5
I’m new to all of this This post was edited on 12/20/24 at 9:27 am
Posted on 12/20/24 at 10:31 am to meeple
I would strongly advise to not get into selling covered calls on mstr if you are new.
But you all should definitely learn how options work and the risk/reward on the buy/sell side
But you all should definitely learn how options work and the risk/reward on the buy/sell side
Posted on 12/20/24 at 10:58 am to LSUSLU106
quote:So the prediction here is Bitcoin is headed up 40X?
Ahh yes the short minded perspective while Bitcoin is trading at a whopping 95k
This post was edited on 12/20/24 at 10:59 am
Posted on 12/20/24 at 12:59 pm to HagaDaga
quote:
So I would be selling the calls backed by the shares I own, right?
Yes. But you can do a synthetic. Some call it a PMCC. It's where you go out into the future and purchase a deep in the money call. Say 6 months to 2 years. That acts like 100 shares and is generally halfish the price of owning 100 shares. You then sell a call for 1 week to a month out.
- Always stay as close to a .90 delta as you can. What that delta tells you is basically how much you earn as it goes up. .90 is roughly .90 on the dollar. So if the stock moves up a dollar, you get $90 in value of the contract. Had you owned the stock, you would get $100.
- Always... always... no what you stand to make or lose. I know a guy that just jumped in and could not understand why he did not make money. It was because on a PMCC you have to account for the delta. For that, there are tools. LINK
Simply click on the poor man's covered call (PMCC) and type in the ticker. ETC...
Posted on 12/20/24 at 1:14 pm to meeple
quote:
Please explain to me like I’m 8. If you just did, then 5 I’m new to all of this
- Call Option.
When you buy a call, you are purchasing the right to buy that stock at that strike price and they have to sell you those shares IF you choice to exercise that right.
Selling a call means they have purchased the right to buy your shares at that strike price and you are obligated to sell it to them.
- Covered Calls.
This is where you purchase 100 shares and then sell a call.
I do this just about daily. It's not all I do though. It's important to be diverse. I own dividend stocks/etfs, and long holds... AMZN for example and do not sell calls on them.
- Example of a covered call
I'll use one that I do not want to hold as an example. C3.AI Current price is $36.36.
I purchase 100 shares costing me $3636. I sell a call at the $37 Strike Price(because I'm not wanting to hold it). If you do want to hold it, sell a higher strike with a .16 or less Delta.
The 37 strike paid me $125. That's mine no matter what. There are 2 outcomes to this trade.
1- The stock goes to $37 or $2000 and I am assigned. All this means is they are going to buy my shares. They have to pay me @ $37 per.. or $3700. Plus I keep that premium of $125. Total profit is $3700-$3636+$125. They will own the shares.
2- The stock does not go to $37. I still get the premium and still own my shares. So I will sell another for the following week.
This post was edited on 12/20/24 at 1:17 pm
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