Cryptocurrency Concept Stocks Surge: MSTR's Volatility and Amazon's Historic High

The cryptocurrency market has been a rollercoaster ride in recent months, with prices fluctuating dramatically. However, one sector that has been consistently gaining traction is cryptocurrency concept stocks. These companies, which have significant investments in cryptocurrencies or are involved in the blockchain industry, have seen their stock prices soar in tandem with the cryptocurrency market. In this article, we will explore the recent surge in cryptocurrency concept stocks, focusing on MicroStrategy (MSTR.US) and Amazon (AMZN.US), and the impact of options trading on their stock price volatility.

MicroStrategy, a business intelligence company, has been a prominent player in the cryptocurrency space. The company has invested heavily in Bitcoin, with its stock price closely tied to the price movements of the cryptocurrency. In recent days, MSTR's stock price has been volatile, mirroring the ups and downs of the cryptocurrency market. This volatility has been driven in part by options traders' strategies, such as large option combinations involving nearly $0.3 billion. These strategies, which involve buying and selling call options with different expiration dates and strike prices, effectively bet on volatility. As a result, MSTR's implied volatility has been rising for three consecutive days, currently at the 90th percentile of the annual range. This increased volatility can make the stock more attractive to other investors, potentially driving up the stock price.



Amazon, the e-commerce giant, has also seen its stock price surge in recent weeks. The company's stock hit a new high yesterday, with a year-to-date cumulative increase of over 40%. This strong performance has been driven by a combination of factors, including the upcoming "Black Friday" and "Cyber Monday" shopping events, which are expected to boost online sales. The surge in Amazon's stock price has also been accompanied by a surge in options trading volume, with a call ratio of 75.6%. On the options chain, multiple call options close to the current price are active, particularly the highest trading volume for calls expiring this Friday at a $215 strike price, exceeding 0.1 million contracts, with an options premium increase of up to 227%. This indicates that investors are bullish on Amazon's prospects and are willing to pay a premium for the right to buy the stock at a lower price in the near future.



The overall cryptocurrency market sentiment has significantly impacted the volatility of cryptocurrency concept stocks like MicroStrategy. As cryptocurrencies gain or lose value, the stocks of companies like MSTR, which have significant investments in cryptocurrencies, also experience increased volatility. This correlation highlights the interconnectedness of the cryptocurrency market and the stocks of companies associated with it.

In conclusion, the recent surge in cryptocurrency concept stocks, driven by factors such as options trading strategies and market sentiment, has made these stocks an attractive investment opportunity. However, investors should be aware of the inherent volatility in these stocks and the risks associated with investing in the cryptocurrency market. As the cryptocurrency market continues to evolve, it will be interesting to see how these stocks perform in the long run.