The crypto stock could benefit from a short squeeze
MicroStrategy Inc (NASDAQ:MSTR) stock is up 6,5% to trade at $414.02 at last glance, as Bitcoin (BTC) continues to flirt with the $100,000 level. The security is looking to extend last session’s gains of nearly 10%, and already boasts a jaw-dropping 550.7% lead for the year. While shares have taken a step back from their Nov. 21, record high of $543, support remains at the 20-day moving average.
Short sellers are already hitting the exits, with short interest down 7.7% over the last two reporting periods. The 28.33 million shares sold short account for 15.5% of MicroStrategy stock’s available float, however, suggesting there is still plenty of pessimism left to unwind.
Long-term options traders lean bullish. This is per the equity’s 50-day call/put volume ratio of 2.07 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 98th percentile of annual readings.