MicroStrategy's cautious market sentiment is impacting the ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ). The shift in sentiment is evident as MicroStrategy's 250-day put-call skew has moved to zero from -20% in just three weeks, indicating that traders are no longer aggressively pursuing upside in the stock. This change reflects a broader cautious outlook on MicroStrategy, a company heavily leveraged on Bitcoin, as the bullish narrative around Bitcoin as a treasury asset loses momentum. Additionally, the broader market is experiencing a surge in speculative trading, with crypto-related stocks jumping as Bitcoin climbs back over $96,000. This speculative fervor, however, does not seem to extend to MicroStrategy, which only saw a modest 3% increase, suggesting a more tempered outlook from investors.
The MSTZ ETF, which inversely tracks MicroStrategy, fell to $24.95, down 11.20% as of 10:15 AM ET on January 2nd.