MSTR Stock Options Flashes “Extreme Bearish” Signals Amid MSCI Delisting Decision

MSTR stock could face further selling pressure if the largest corporate Bitcoin treasury Strategy (formerly MicroStrategy) fails to cool concerns over MSCI index delisting. Options data show extreme bearishness among investors near the MSCI delisting decision date and monthly expiries.

What’s Ahead for MSTR Stock as Options Signal Extreme Selling Pressure

MSTR stock is facing a wave of negative sentiment as the January 15 deadline approaches for a critical delisting decision by MSCI. This comes amid selling pressure as Bitcoin enters the bear market phase.

According to Barchart data, put options volume on MSTR shares surged while implied volatility and open interest skewed toward downside protection. Options activity in the past weeks shows bearish bias, with traders likely hedging against a further drop in MSTR stock price.

At the time of writing, the put-to-call ratio for the Jan 9 options expiry is 1.57. Notably, it has reached 3.55 for the Jan 16 expiry, indicating extreme bearish sentiment.

The growing bearishness comes amid uncertainty over Strategy amid fears of falling mNAV and MSCI delisting. If the delisting proceeds, it could trigger forced selling by funds, increasing price pressure on the already-volatile stock.

MSTR stock closed 0.063% higher at $158.81 on Friday. The stock has even underperformed Bitcoin, down 47.10% year-to-date (YTD). Whereas BTC has dropped 5% YTD.

As CoinGape reported, Strategy on-chain data showed the stock has recorded repeated drawdowns during previous bear markets. Dilutions exposed investors to significant risks as the stock has dropped by 51% following the October crypto market crash.

Michael Saylor Hints at More Bitcoin Purchases

MicroStrategy, known for its aggressive Bitcoin accumulation strategy, plans to continue BTC purchase despite dwindling MSTR stock ahead of the looming MSCI decision.

Michael Saylor hinted at announcing another Bitcoin purchase. In the latest X post, he said “Back to Orange,” along with an image of orange dots representing recent BTC acquisitions.

Gold bug Peter Schiff lambasted Michael Saylor in a reply, asking “Where will you get the money to buy more Bitcoin?”

Recently, Michael Saylor and CEO Phong Le defended MSTR stock’s fall and Bitcoin accumulation strategy amid MSCI delisting concerns.

BTC price is trading 2% higher at $89,530 over the past 24 hours. The intraday low and high are $87,394 and $90,299, respectively. Furthermore, trading volume has increased massively by 130% over the last 24 hours.