MicroStrategy Faces Bitcoin Volatility as $10B Options Expire
MSTR•$10 billion of bitcoin options, equating to about 37% of Deribit open interest, expire Friday, potentially amplifying directional price moves in a market with thin quarter-end liquidity. Bitcoin has dropped below $60,000 to its lowest level since October 2024, trading near $60,800 and down over 50% from its record high.
1. Bitcoin Options Expiry Details
About $10 billion of bitcoin options on Deribit, representing roughly 37% of open interest, expire at 4 p.m. Singapore time on Friday. The concentrated expiry coincides with thin quarter-end and summer liquidity, increasing the likelihood of pronounced price swings before dealers unwind hedges.
2. Market Positioning and Skew
Most of the expiring contracts are long calls now out-of-the-money, while puts are clustered around $60,000–$75,000 strikes. This call-skewed positioning suggests traders may shift to defensive or bearish bets as the spot price sits below many strike levels.
3. Key Price Levels and Technical Indicators
Bitcoin dipped below $60,000, its weakest since October 2024, and trades near $60,800, more than 50% beneath its all-time high. It remains below the 200-week moving average, a technical threshold often linked to prolonged bear markets.
4. Implications for MicroStrategy
MicroStrategy’s balance sheet, underpinned by its substantial bitcoin reserves, stands to experience renewed valuation volatility. Large directional moves driven by the options expiry could widen swings in the company’s asset-based equity.
