Trade Alert - (MSTR) May 5, 2025

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - (MSTR) - BUY

Buy the MicroStrategy (MSTR) June 2025 $500-$510 in-the-money vertical bear put debit spread at $8.50 or best

Opening Trade

5-5-2025

expiration date: June 20, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 13 contracts

After a monster 74% rally in less than a month, I am more than happy to jump back into (MSTR) on the short side once again. I am also drawn by the sky-high implied volatility in the options.

MicroStrategy is a highly leveraged long play on Bitcoin and with 97% implied volatility for its options.

I want to get this out quickly before it falls any further. I‘ll follow up with an update on the insane fundamentals of this company.

Therefore, I am buying the MicroStrategy (MSTR) June 2025 $500-$510 in-the-money vertical bear put debit spread at $8.50 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Do not pay more than $9.20, or you will be chasing

Simply enter your limit order, wait five minutes, and if you don’t get done, increase your bid by 10 cents with a second order.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $8.50, $8.60, $9.60, $8.70, and $8.80. You should get done on some or all of these.

This is a bet that MicroStrategy will not trade above $500 in 34 trading days.

Here are the specific trades you need to execute this position:

Buy 13 June 2025 (MSTR) $510 puts at…………………....…$138.00

Sell short 13 June 2025 (MSTR) $500 puts at……………….$129.50

Net cost:………………………….……………......................…………$8.50

Potential Profit: $10.00 - $8.50 = $1.50

(13 X 100 X $1.50) = $1,950 or 17.67% in 34 trading days

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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