For the last two Fridays, about an hour before the close, Bitcoin has had a mini-correction. On Friday, it was down almost 5% from top to bottom.
As a result, from lunchtime until the close, MSTR—Miscrostrategy Inc. was down almost 7%.
What gives?
I have no idea, other than the Big Boyz like to play with the tape leading into the close, to blow out option positions.
It happened to me, but in a good way.
I hold MSTR, and as you know, I’ve been selling covered calls against it. I had strike prices of $1,600 and $1,650 leading into Friday. On Friday afternoon, MSTR was trading below $1,650, so I covered my positions, booked a profit, and that was it.
However, had I waited until the close, the options would have expired worthless, and I would have generated a greater profit.
So be it. I didn’t want the stock to whipsaw back up at the close resulting in my shares being called. That would be a disaster, because I’m sitting on a huge gain, and I don’t want to prematurely generate a taxable capital gain.
Will I cover this week?
Probably, but I’ll wait until we have an up day or two. No point in covering at the bottom.
That’s the update. See you next week.
Friday Afternoon Crash?
by JDH on June 8, 2024
For the last two Fridays, about an hour before the close, Bitcoin has had a mini-correction. On Friday, it was down almost 5% from top to bottom.
As a result, from lunchtime until the close, MSTR—Miscrostrategy Inc. was down almost 7%.
What gives?
I have no idea, other than the Big Boyz like to play with the tape leading into the close, to blow out option positions.
It happened to me, but in a good way.
I hold MSTR, and as you know, I’ve been selling covered calls against it. I had strike prices of $1,600 and $1,650 leading into Friday. On Friday afternoon, MSTR was trading below $1,650, so I covered my positions, booked a profit, and that was it.
However, had I waited until the close, the options would have expired worthless, and I would have generated a greater profit.
So be it. I didn’t want the stock to whipsaw back up at the close resulting in my shares being called. That would be a disaster, because I’m sitting on a huge gain, and I don’t want to prematurely generate a taxable capital gain.
Will I cover this week?
Probably, but I’ll wait until we have an up day or two. No point in covering at the bottom.
That’s the update. See you next week.