May 26, 2025
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10X Research Recommends Bear Put Spread on MSTR as Price Diverges from Bitcoin
10x Research, led by Markus Thielen, has recommended bearish options on MicroStrategy (MSTR) as its share price diverges from the upward trend of Bitcoin (BTC). Key points include:
- Thielen suggests a bear put spread on MSTR with a long $370 put and a short $300 put, expiring June 27.
- This strategy maximizes profit if MSTR drops to $300 or lower by expiration.
- The maximum loss for this strategy is limited to its initial cost, which was $13.89 on Friday.
- MSTR's price fell 7% to $369 on Friday; it holds 576,230 BTC, the largest for any public company.
- While BTC reached over $110K last week, MSTR's price stalled around $440, far below its peak of $543 in November.
- Thielen noted that this trade reflects the disconnect between Bitcoin's strength and MSTR's declining momentum.
- A similar divergence occurred before BTC's peak in November 2021.
- Thielen stated that purchasing a put spread can be profitable and serve as a hedge against potential BTC weakness.
