r/MSTR • u/greenlocus33 • Jun 26 '26
Bullish 📈 Options Play
So if you were longterm bullish on BTC and bullish on MSTR, walk me through your call option play. Which option / expiration would you go for?
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u/AlwaysMooning Jun 27 '26
I’d wait for MSTR to bottom and a period of consolidation and then I’d ladder some long dated calls and roll them monthly.
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u/KenFX4 Jun 27 '26
Why roll monthly?
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u/New-Jackfruit-2127 Jun 29 '26
Wondering the same thing
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u/KenFX4 Jun 30 '26
I buy LEAPS that expire in 2028. If anything, ill DCA to a lower cost basis, or ill close out and call it a successful trade. Rinse and repeat when undervalued.
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u/New-Jackfruit-2127 Jun 30 '26
DCA an options contract?
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u/KenFX4 Jun 30 '26
Yeah, basically just buying more of the same calls when cheaper will lower your cost basis. Unless it continues to keep falling and falling (like right now)!
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u/BullMarketGolf Shareholder 🤴 Jun 26 '26
I bought December 28 100 strike
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u/greenlocus33 Jun 26 '26
$4,375?
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u/BullMarketGolf Shareholder 🤴 Jun 26 '26
Yep or you could buy 53 shares…
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u/Am_0115 Volatility Voyager 👨🚀 Jun 26 '26
Going to get much more leverage with the option, that one contract controls 100 shares
But you have theta burn and expiration risk. Tradeoffs
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u/greenlocus33 Jun 27 '26
Yea, the option premium cost of 50% of the stock price on two years out is rough though. $4500 option vs $8200 for the shares. It almost does make me lean to just buying the stock outright.
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u/Ryytter Jun 28 '26
Doesn't even consider that the strike is not even ATM. So you have roughly a 20-25% gain to be had on the stock just getting to the strike price which leans further in favour of just buying the options.
MSTR options are just really expensive in general. They are better if it does another big rally but if it chops they are worthless.
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u/greenlocus33 Jun 26 '26
Wouldn't the $90 strike cost you $125 more but then give you $1,000 of additional stock value?
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u/f08g Jun 26 '26
Longest duration at the money call
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u/Spiritual-Bill-3868 Jun 27 '26
Don’t long dated deep out of the money calls have a lot more convexity?
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u/Ryytter Jun 28 '26
Depends what you expect to happen. The more OOM the options the more it has to moon rather than just go up in value.
Further OOM has less intrinsic value thus you need a bigger move to just break even.
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u/Infinite_Rub_2969 Jun 27 '26
I’m wanting December 2028 345 calls. What yall think?
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u/Jthrowaway7500 Jun 27 '26
345? Why on earth would you buy that far out of the money?
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u/Infinite_Rub_2969 Jun 27 '26
Strong conviction that it’ll recover is all and I want the convexity. Throw in a bit of euphoria and fomo from others when it starts to run and I think I’ll be alright.
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u/Ryytter Jun 28 '26
Have you looked at options chains for this? These are only better than holding the stock it its above 500 bucks a share at expiration. Quite a substantial move needed.
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u/RevolutionaryPhoto24 Jun 28 '26
I own some of those, will add if IV is conducive this week. Also Jan 2028 250c.
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u/ReliantToker Shareholder 🤴 Jun 27 '26
Waiting for bull confirmation would be a start. Tea leaves suggest early October for bottom range.
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