MicroStrategy (MSTR)

By JC Parets Thu, Nov 4, 2021

I just got back from the New York NFT Conference, and it was eye-opening to say the least.

The place was packed with smart people talking about web 3.0, NFTs, and cryptos.

I have to say, I think the risk right now is not being bullish enough.

That’s why today’s Chart of the Week follows CEO Michael Saylor’s company,  MicroStrategy (MSTR).

Saylor is investing significant portions of MSTR’s operating capital in Bitcoin, making the company’s chart look almost identical to BTC, and turning MSTR into essentially a Bitcoin ETF as a result.

With that in mind and the current performance of Bitcoin, we love MSTR at $770 with a target back to its February highs of $1275.

And as a bonus, we have options plays here, as well.

I like buying an April 900/1000 Bull Call Spread for any debit below $24.00, meaning I’ll be long the 900-strike calls and short an equal amount of 1000-strike calls for a net debit which represents the most I can possibly lose.

Volatility is elevated let’s take advantage of that!

Til next week, good trading,

JC Parets

About the Author

JC Parets, founder of All Star Charts, specializes in finding the most opportunistic risk vs. reward propositions while at the same time bringing a top/down approach to the marketplace whose wide spectrum is rivaled by few. JC begins with a long-term global macro perspective and then works his way down to the individual sector and industry level before ultimately isolating the stocks that best portray a particular thesis. Price is the most important technical indicator, but JC uses supplements such as Momentum, Relative Strength, and Fibonacci analysis to complete the process.