Strategy Stock Suffers Steep Slide on MSCI Exclusion

Shares of Strategy Inc (NASDAQ:MSTR) are down 7.4% to trade at $113.34 after index provider MSCI confirmed the stock will be removed from its global benchmark after the market's close, Nov. 30. The bitcoin-holder is the first to be cut under MSCI's new rules for non-operating companies, having failed to pass five financial ratio tests.

The software stock is trading at its lowest level since August while pacing for a fifth declining session in six. The shares have struggled annually, sporting a 49% year-over-year decrease, with recent overhead pressure emerging at the 20-day moving average.

Options are priced affordable at the moment, however. MSTR's Schaeffer's Volatility Index (SVI) of 80% stands higher than just 8% of all other readings from the past year.

It's also worth mentioning the equity has tended to outperform options traders' volatility expectations over the past 12 months. This is per MSTR's Schaeffer's Volatility Scorecard (SVS) of 98 out 100.