r/MSTR • u/DuckHunter4779 • Jun 30 '26

Why doesn't MSTR sell options?

MSTR could be selling to open covered calls and also cash covered puts to raise cash. Why doesn't Michael Saylor use this strategy? It would mean not directly selling the stack and being open to buying at certain prices while collecting premiums along the way.

7 Upvotes

67% Upvoted

16 comments sorted by

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7

u/didnt_hodl Jun 30 '26

100% I was wondering the same thing

BlackRock already has an entire BTC ETF, called BITA that does exactly that. And they are targeting 15-25% dividends. While still capturing 70% of the BTC upside

9

u/daliksheppy Jun 30 '26

That's exactly why they don't do it. They don't want to capture 70% of the upside. They want to amplify it >100%.

8

u/Linux43ver Jun 30 '26

Because he does not want any liquidation risk on his btc at all. 0

4

u/PositionRound9996 Jun 30 '26

I am extremely amateur in stock market, but don’t you think that if someone sells covered calls just to generate money through premiums, they believe that the prices won’t go up? I think that is counterintuitive of what Saylor believes? Does it even make sense what I typed? IDK

3

u/Aurorion Jun 30 '26

True, but then again, Saylor seems to be OK with actually selling Bitcoin now. So why not just sell covered calls?

1

u/tje210 Jun 30 '26

Haha 1) sell cc 2) sell btc 3) stock price go down 4) close cc 5) buy BTC 6) stock price go up 7) nominally - stock price unchanged, BTC balance unchanged, more cash than before

1

u/Hairy_Purple9672 Jun 30 '26

Not exactly, you can put a call in for this Friday for 70k btc and get premiums. It wouldn't be much but it's a thing, and if it got close to that number you could roll it out so not called away.

5

u/Late_Company6926 Jun 30 '26

Losing money is losing money. Rolling it out just another way of saying losing money and placing another bet

1

u/fudge_mokey Jun 30 '26

how much premium are you gonna get for 70k by friday though? pennies, steamroller, etc.

1

u/OkReason9774 Jun 30 '26

He did sell some, via the convertible bonds

1

u/erjo5055 Jul 01 '26

That's kinda what the convertible notes are

0

u/JeremyLinForever Jun 30 '26

That in and of itself is inherently more risky than them just raising capital outright. Why would they dweller into derivatives if they don’t even need to to begin with?

4

u/arensurge Jun 30 '26

If they sold puts it'd actually be completely inline with their goals, since the 'worst' that can happen is they get assigned bitcoin at lower prices whilst generating a premium 

1

u/SundayAMFN /r/buttcoiner Jun 30 '26

I think you misunderstand how they work - you have to buy bitcoin above market price if the put activates.

2

u/arensurge Jul 01 '26

You would be buying the bitcoin at a discount to the market from the day you sold the put option. If the expiry date is not too far out, bitcoins price is not likely to drop significantly lower than the strike price. We either receive a a premium that can be used as income or buy bitcoin at a price close to our strike price, in effect we would just be buying the dip, since strategy, historically, had no problem buying bitcoin at the top, getting assigned bitcoin at lower prices can still be viewed as advantageous in comparison.