Trade Alert – (MSTR) May 20, 2025 – BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert – (MSTR) – BUY

 

Buy the MicroStrategy (MSTR) June 2025 $335-$345 in-the-money vertical bull call debit spread at $8.40 or best

 

Opening Trade

5-20-2025

expiration date: May 20, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 13 contracts

I believe the Trump family will continue to promote their many crypto businesses, which they only started acquiring two years ago. Crypto miners were major contributors to the Trump campaign.

Trump is now offering to personally meet people who buy millions of dollars’ worth of his own $TRUMP meme coin, which was issued on January 17, 2025, three days before the presidential inauguration. By coincidence, major crypto deregulation is included in the House budget bill.

Therefore, I believe Bitcoin may continue appreciating for the short term but not make it to new all-time highs.

This new position can also hedge our existing short positions in (MSTR). The combination of the two is known in the trade as a “short strangle.” It is made especially attractive by the 65% implied volatility for the options, one of the highest in the market.

MicroStrategy is a highly leveraged long play on Bitcoin and with 97% implied volatility for its options.

I want to get this out quickly before it falls any further. I‘ll follow up with an update on the insane fundamentals of this company.

Therefore, I am buying the MicroStrategy (MSTR) June 2025 $330-$340 in-the-money vertical bull call debit spread at $8.40 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Do not pay more than $9.00, or you will be chasing

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 10 cents with a second order.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $8.40, $8.50, $8.60, $8.70, and $8.80. You should get done on some or all of these.

This is a bet that MicroStrategy will not fall below $345 by the June 20 option expiration in 22 trading days.

Here are the specific trades you need to execute this position:

Buy 13 June 2025 (MSTR) $335 calls at………………….…$86.00

Sell short 13 June 2025 (MSTR) $345 calls at…………….$77.60

Net cost:………………………….……………………………..………$8.40

Potential Profit: $10.00 – $8.40 = $1.60

(13 X 100 X $1.60) = $2,080 or 19.05% in 22 trading days

 

 

 

Carlo Ponzi in 1920

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.