MicroStrategy put options price dynamics defy stock drop, Susquehanna highlights By Investing.com
On Monday, MicroStrategy Inc . (NASDAQ:) experienced a notable stock price decline, falling approximately 4.4% from around $422 to $403. This descent, however, did not translate into the expected gains for put option holders, Susquehanna International derivative strategists Christopher Jacobson highlighted. Specifically, the March 400 strike puts, which were bought at Friday’s close for approximately $144.40, decreased in value to about $130.95 by Tuesday afternoon. This occurred despite the stock’s drop, as a significant pullback in implied volatility from 176% to 155% led to a decrease in the options’ value. The decline in volatility resulted in a roughly $17 reduction in the put options’ price, overpowering the gains from the…
