Strategy Inc (NASDAQ:MSTR) stock was last seen 5.9% lower to trade at $125.07, as Bitcoin (BTC) continues to melt down, off roughly 6% in the last two days. The security has shed more than 61% in the last 12 months, and is today pacing for its this loss in four sessions amid overhead pressure from the 60-day moving average.
Shares look ripe for a round of bear notes, with 17 of the 18 firms in coverage sporting a "buy" or better rating, while the 12-month consensus target price of $346.18 is a 176.9% premium to current levels.
Shares have failed to rally despite unwinding short interest -- down 14.2% in the last two reporting periods -- underscoring technical weakness. The 32.45 million shares sold short still make up 10% of MSTR's available float, or roughly two days' worth of pent-up buying power.
Though calls still outpace puts on an overall basis, bearish bets have been more popular than usual. This is per MSTR's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 89% of annual readings.
Options look affordably priced. This is per the Strategy stock's Schaeffer's Volatility Index (SVI) of 71% that stands higher than 11% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
