Strategy Stock Drops Below Key Support as Traders Brace for More Declines
Strategy (MSTR) shares have slid over 14% in the past two weeks, closing Wednesday at $392—below the 50-day simple moving average, a key technical level that often acts as price support.
The downturn has triggered a sharp rise in demand for downside protection. The one-year put-call skew, which measures the difference in implied volatility between long-dated put and call options, rose to 3.6%—the highest since mid-April, according to Market Chameleon data.
This widening skew signals that options traders are increasingly paying up for puts over calls, reflecting growing expectations of continued weakness in MSTR stock.
“The jump in put volatility indicates traders are pricing in elevated downside risk over the next year,” noted analysts. “It shows a shift in sentiment toward caution—even among long-term investors.”
MSTR, which holds 628,791 BTC worth around $74.7 billion, is the largest publicly traded corporate bitcoin holder. The company’s bold bet on BTC as a treasury reserve asset has made its stock highly sensitive to crypto market moves.
While the strategy paid off in bull cycles, recent price action has weighed on investor confidence. With bitcoin itself trading sideways and macro uncertainty in play, MSTR’s drop below the 50-day moving average could signal further selling pressure ahead.
