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In effect, chaos appears to be the theme of the market, with the recent government shutdown merely representing the latest salvo in an ecosystem of wild events. Given the uncertainty in the air, it’s no surprise that gold has rocketed higher; after all, the precious metal commands universally recognized intrinsic value. Still, for the new generation of investors, cryptocurrencies represent a trusted safe haven — and that brings to the discussion Strategy (MSTR).

Formerly known as MicroStrategy, the company with a streamlined name is effectively a proxy for blockchain assets. While speculators may prefer direct exposure to cryptos, MSTR stock offers several conveniences. Since it’s a publicly traded equity, investors don’t need to fret about custodial matters, such as cyberattacks (as it relates to stolen assets) and even lost passwords. Instead, they can focus on the activity of speculation — which is difficult enough on its own.

Fundamentally, what makes MSTR stock particularly intriguing at this juncture is the options market. According to Barchart, the Thursday session saw net trade sentiment in the options flow screener reach $17.85 million, favoring the bulls. To be fair, most of this dollar amount stemmed from near-expiry call options. However, several million dollars were dedicated to longer-expiry calls.

This sentiment was corroborated by Fintel, which showed that on Oct. 2, net long premiums bought — which backs out the premiums tied to bearish calls and puts and bakes in bullish equivalents — stood at over $25 million. While it’s always difficult to discern sentiment from day-to-day fluctuations in the data stream, it seems that the bulls are positioning themselves for greater upside.

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Longer term, short interest could be a key indicator as to where MSTR stock ultimately heads. While there’s no statistically meaningful correlation between the equity and its short interest trajectory, they have tended to move opposite to each other. Subsequently, Strategy carries little bearish pressure compared to prior levels.

Over time, this relationship may shift, with more speculators piling into the short side of the trade. That could set up a truly explosive move in MSTR stock due to potential short-squeeze pressure. As such, I would keep close tabs on Strategy and monitor its short interest. That could tip off if another big move is in play.

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