Disclaimer: The analyst who wrote this article owns shares in MicroStrategy (MSTR).
Bitcoin (BTC) developer MicroStrategy (MSTR) is one of the most volatile and traded stocks on the market.
Volatility within a stock is beneficial as it allows for large volume trading. MicroStrategy has a market capitalization of less than $100 billion, but its trading volume rivals that of seven large technology companies.
All seven great tech stocks have market caps of at least $1 trillion, well over 10 times MicroStrategy’s market cap, and Apple (APPL), NVIDIA (NVDA), and Microsoft (MSFT) have market caps of $3 trillion. It’s more than a dollar.
According to data from Market Chameleon, from December 2, 2024 to January 7, 2025, an average of approximately 24 million MSTR shares were traded each day. This puts MicroStrategy in sixth place among other tech stocks, ahead of Microsoft (MSFT) with 20 million shares traded each day and Meta (META) with 12.2 million shares traded daily. The clear winner is NVIDIA, followed by Tesla (TSLA).
MicroStrategy is up about 14% year-to-date and has a 30-day implied volatility (IV) of 104. IV determines the market’s expectations for the future price movement of an asset over the next 30 days.
IV is based on option pricing, and considering that iShares Bitcoin Trust (IBIT) has an IV of approximately 60, the volatility of MSTR is 1.7 times that of IBIT. According to Market Chameleon Data, as of January 7th data, MicroStrategy has the highest IV30 of 105, the highest of the 7 great tech stocks, and its closest rival is Tesla, with an IV30 of 71.0. .
