Sort of won, kind of…

by JDH on June 1, 2024

I don’t want this to turn into the MSTR—Miscrostrategy Inc. blog, but since nothing else is going on in the world, here’s the update:

MSTR had a big drop this week.  It peaked at $1,715 on Thursday, and dropped to $1,445 on Friday before bouncing slightly to close at $1,524.

I am bullish on the stock, so I’m holding, but I want to juice my returns, so I’ve been selling out of the money covered calls with one week to expiry.  The premiums are large, so it should be easy money, but in a bull market, it isn’t.  I’m way up on the stock, but down on the covered call trade.

On Thursday, after the drop, I was able to close out this week’s calls at a nice profit and roll them forward, so I won.  A smarter move probably would have been to close them out and stop, but that’s not my style.  So, we’ll see what happens next week.

Bitcoin is having trouble making a new high.  It could happen tomorrow, or it may take a while.  My assumption is that money printing will continue, and that’s good for risk assets, but who knows.

For now, the summer weather is here, so I won’t spend any more time thinking about it.

See you next week.