"Options Market Statistics: Strategy Stock Drops as Bitcoin Comes Under Heavy Selling Pressure; Options Pop"

The options market is buzzing with activity as Strategy (MSTR) shares have fallen 30% since its executive chairman and former CEO, Michael Saylor, was featured on the cover of Forbes. Between January 30 and March 10, 2025, Strategy’s shares dropped from $340.09 to $238.25, with a significant 17% decline on March 10 amid a wider sell-off in the tech stock market. This decline coincides with a broader market trend, as the Nasdaq Composite, to which Strategy belongs, fell over 4% on the same day. The renewed fears of a recession, with the Atlanta Fed projecting a negative -2.4% gross domestic product growth for the first quarter of 2025, and increased rhetoric of trade wars have sparked fear among investors in the equities market. CNN’s Fear & Greed index sits at ‘16’ for the day, which signifies ‘Extreme Fear.’



Despite the falling stock price, Strategy remains unwavering in its commitment to a Bitcoin (BTC) strategy. The company announced plans to raise an additional $21 billion for “general corporate purposes, including the acquisition of Bitcoin and for working capital.” On February 24, Strategy purchased 20,356 Bitcoin for nearly $2 billion. Although Bitcoin recorded the largest weekly decline in the asset’s history on March 10, Strategy’s Bitcoin investment is still profitable by 18.9%. The company has purchased its BTC at an average cost of $66,423, well below the price of the asset at this time of writing.

The debate surrounding Strategy's Bitcoin strategy has sparked both proponents and critics in the crypto space. Some believe it is a stroke of genius, a bet on the digital asset’s track record that has caused it to rise from nothing to a market cap of $1.56 trillion in 15 years. Others have not been so kind, likening the company to a ticking time bomb or a Ponzi. In November 2024, crypto investor Hedgex.eth called it the latter, writing on X that Saylor “will do more damage to Bitcoin than anyone else using endless leverage.” Haralabos Voulgaris wrote on X that “at some point, the next ‘unexpected’ BTC implosion will likely be tied to MSTR.”



Still, Strategy’s move has spawned copycats throughout the business world, with some companies buying Bitcoin for their treasuries and seeing a surge in investor enthusiasm. One of those companies is Metaplanet, whose share price rose 4800% in 12 months after it announced its BTC buying strategy. This indicates that, despite the risks, there is significant investor interest in companies that adopt a Bitcoin strategy.

The options market has seen a surge in activity as investors seek to hedge their positions or speculate on the future direction of Strategy’s stock. Cboe Global Markets reported that the average daily trading volume (ADV) in February across its four U.S. options exchanges was an all-time high of 18.0 million contracts. This was driven by a record multiply-listed options ADV of 13.6 million and an S&P 500 Index (SPX) options ADV of 3.5 million contracts, the highest month on record. Several new single-day records were set on February 21, including a total U.S. options volume of 25.7 million contracts across Cboe's four options exchanges and an SPX options volume of 4.7 million contracts, eclipsing the previous single-day record from December 2023.

In conclusion, the recent decline in Strategy’s stock price and the surge in options activity reflect the broader market trends and investor sentiment. While the company’s commitment to Bitcoin remains a contentious issue, the options market provides investors with tools to navigate the volatility and uncertainty. As the debate surrounding Strategy’s Bitcoin strategy continues, investors will be closely watching the company’s performance and the broader market trends.