To The Moon

Ethereum, the second-ranked cryptocurrency, performed strongly during the weekend, leading the digital asset market as demand from institutional investors and buyers in the corporate finance sector continued to grow.

During the Asian trading session on Monday, Ethereum rose as much as 2.9%, exceeding $4,300, setting a new high since December 2021; At the same time, Bitcoin once exceeded US $122,000 per piece, approaching the highest price in history. U.S. cryptocurrency concept stocks continued to rise in night trading, BMNR rose more than 15%, Coinbase rose nearly 8%, Strategy and MARA Holdings rose more than 5%, and Circle rose more than 4%.

The rally stems from growing interest in Ethereum among large investors.Since the beginning of this year, more than $6.7 billion has flowed into nine Ethereum exchange-traded open-end index funds (ETFs) listed in the United States.

In addition, listed institutions known as digital asset finance companies, which focus on accumulating cryptocurrencies, have also injected momentum into Ethereum. According to data from the strategic asset reserve website strategicethreserve.xyz,These institutions have hoarded about $13 billion in Ethereum so far。

For investors who want to grasp the rising market of Bitcoin, they can consider going long MSTR to capture investment opportunities.

How to Use the Sell Put Strategy to Go Long MSTR

$Strategy (MSTR) $The future may be full of potential, but its stock price is highly volatile, which also makes many investors afraid of buying stocks directly. In this case, the Put Selling strategy can provide a lower-risk way to go long MSTR.

Selling a put option is an operation in which you earn premium by selling a put contract at a specific strike price. In a bullish scenario, this strategy has two major advantages:

1. Reduce buy-in costs: If the stock price falls below the strike price, you will buy the stock at a lower price while keeping the premium as additional income.

2. Get stable income: If the stock price remains above the strike price, the option contract expires and is invalid, and you directly receive premium as income.

MSTR Options Strategy

The current MSTR stock price is 416. You can choose the following actions:

• Sell a put option with an exercise price of $400 expiring on September 26 and receive a premium of $3065

  

  Scenario 1: Stock price above $400The option buyer will not exercise the option, and you keep the $3,065 premium, which directly gains about 7.66% ($3,065/$40,000).

  Scenario 2: Stock price below $400You need to buy MSTR stock at a price of $400, but the actual cost drops to $369.35 ($400-$30.65) after deducting premium, which is about 7.66% off the current stock price.

  Advantages and risks of strategies

  • The advantage

    Effectively reduce the cost of building a position: Even if the stock price of MSTR falls, you can buy the target stock at a lower price.

    Take profit from volatility: The high volatility of MSTR drives up the option premium, which means higher premium gains.

  • Risk

    Downside risk: If the MSTR stock price falls sharply, you will still have to bear the losses of holding the stock.

    Opportunity cost: If the stock price rises sharply, you will miss out on the higher capital gains brought by direct buying.

  Applicable population of the strategyThis strategy is particularly appropriate for:

  Investors who are bullish on the development of MSTR in the long term but want to take a position at a lower price.

  Investors who have a high risk tolerance and are willing to take on the risk of a stock's decline.

  sum upAs Microstrategy's market value increases driven by rising prices and business expansion in Bitcoin, this strategy provides an alternative with both returns and margin of safety for investors who are optimistic about its long-term value but unwilling to directly catch up at high prices. Driven by the expectation of continued rise in Bitcoin prices and the potential business growth of MSTR, selling put options may become an effective way to participate in its future growth.