Big Drop In The Bitcoin Stock We Bragged About


Microstrategy meme via CryptoCrunchApp. 

Macro Drop From MicroStrategy

We bragged about picking MicroStrategy (MSTR) in our last post (Silver: The Family Circus Of Investments). Then it dropped 23% on Wednesday. 


Here, we recap what happened, update our take on it, and show how its drop impacted our hedged investors. 

MicroStrategy, Riot Blockchain, And Tesla

MicroStrategy and Riot Blockchain (RIOT), another recent top name of ours, both spiked on Monday. We explained why in our last post:

Like MicroStrategy, it was boosted by the actions of another recent top name of ours, Tesla (TSLA). And Tesla's actions were apparently inspired by the CEO of MicroStrategy, Michael Saylor.

We love synergy.

The action of Tesla, of course, was adding bitcoin to its balance sheet. 

Gains Continued On Tuesday 

That spike continued Tuesday, fueling more gains for MSTR and RIOT. As of Tuesday's close, MSTR was up more than 327% from when it first appeared on our top ten names on December 17th.

As a reminder, we update our top ten names each trading day, based on our system's analysis of total returns and options market sentiment for every underlying security with options traded on it in the U.S. MSTR and RIOT were both top ten names on February 1st. Both had about doubled by Tuesday's close. 

Wednesday's Drop

Then came Wednesday's drop, which was much worse for MSTR. 


Interestingly, our system was much more bullish on MSTR than RIOT after Wednesday's drop. MSTR was our #1 name, and RIOT was #53. That was due to much more positive options market sentiment on MSTR. 

MicroStrategy And Hedged Investors

The fear of stocks like high-flying stocks like MicroStrategy tanking keeps some investors away from them. Our approach to investing in the face of that fear is to buy likely winners and hedge away the fear. You indicate the maximum decline you're willing to risk over the next six months, and we create a hedged portfolio designed to maximize your returns while strictly limiting your risk. You can indicate you're willing to risk a decline of as little as 2%, and our system will create a portfolio to maximize your returns while hedged against a >2% decline.

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