MSTR - MicroStrategy: Stock Split Upside Is Potentially Enormous

2024-07-15 08:52:59 ET

Summary

• MicroStrategy Incorporated announced a stock split, potentially leading to bullish market dynamics.
• Stock split lowers the barrier to entry to participating in the MSTR options market.
• A more liquid and active options market gives investors better opportunities to hedge and speculate while placing a better floor price via put writing.
• The stock split also sets the stage to trigger a gamma squeeze scenario, potentially leading to extreme upside for MSTR. However, this would be more of a "temporary spike."
• I also examine the fundamentals of MSTR, and conclude that the sustained premium over the BTC treasury is justified.

MicroStrategy Incorporated ( MSTR ) has announced a 10-for-1 stock split . Stock splits do not normally affect the value of a business, but in this case we could see some interesting market dynamics play out which make this a potentially very bullish development....

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