CandleFocus

MicroStrategy's Wild Volatility Outpaces Bitcoin by 2.5 Times. Here's What it Mean for Traders?

Nasdaq-listed company MicroStrategy, known for holding a large amount of bitcoin, is experiencing higher volatility in its shares compared to the cryptocurrency itself. This is presenting an opportunity for savvy investors who engage in options trading to potentially earn higher income. MicroStrategy's stock has seen a 500% increase in price this year, while bitcoin has seen a 124% surge. The implied volatility for MicroStrategy's options is 2.5 times greater than bitcoin's, meaning premiums for options are higher. Traders can take advantage of this situation by writing call options and collecting premiums. This covered call strategy could generate returns 2.5 times greater than BTC options. However, it is important to note that this strategy does come with risks and can limit potential gains.

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