Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR)
The bitcoin (BTC) growth firm MicroStrategy (MSTR) is among the most risky and traded equities available on the market.
Volatility inside an fairness could be useful because it permits for high-volume buying and selling. Though MicroStrategy has a market cap of lower than $100 billion, its buying and selling quantity rivals that of the magnificent seven know-how corporations.
All of the seven magnificent tech shares have a market cap of at the least $1 trillion, properly over ten occasions the market capitalization of MicroStrategy, with Apple (APPL), NVIDIA (NVDA), and Microsoft (MSFT) having market caps of over $3 trillion.
Information from Market Chameleon exhibits that between Dec. 2, 2024, to Jan. 7, 2025, a mean of practically 24 million MSTR shares have been traded every day. This might place MicroStrategy sixth out of the opposite tech shares, above Microsoft (MSFT), which trades 20 million shares every day, and META (META), which trades 12.2 million shares every day. The clear winner is NVIDIA, with Tesla (TSLA) in second place.
MicroStrategy is up round 14% 12 months thus far, with a 30-day implied volatility (IV) of 104; IV determines the market’s expectation of future worth actions for the asset over the subsequent 30-day interval.
The IV comes from choices pricing, and contemplating that iShares Bitcoin Belief (IBIT) has an IV of round 60, this may make MSTR 1.7 occasions extra risky than IBIT. As of Jan. 7 knowledge, MicroStrategy has the best IV30 of 105, the best out of all seven magnificent tech shares, with Tesla as its closest rival with an IV30 of 71.0, based on market chameleon knowledge.
MicroStrategy vs Magnificent 7 (Market Chameleon)
