MSTR as a defined-risk trade for asymmetric risk-reward

**** NOT FINANCIAL ADVISE ****

I have an active trade, but it's a 2-part trade, a planned parlay bet

**** Not Financial Advice ****

Weekend random thoughts musings...

I read a lot of trading psychology books and how to deal with emotions wrt an active trading position, Trading in the Zone, Reminiscences... The Market Wizards books...

I'm down over 40% m2m on my position, but I say this with a very high level of confidence that this trade will be a winning trade in my humble opinion

hundreds of % return on risk capital, not financial advice, tho


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Psychopathic-autistic-level idiocy :D or Hal Finney level of intelligence RIP


I have thought so much about what I would have done if I bought Bitcoin back at $100 when I first considered but got scared because of all the ties with the drug industry.

Seeing how my trading in the futures markets had gone these past few years, its likely that I would have sold after just doubling my money, and then seeing it run up to $1000 very quickly, I would have been too scared to get back in. Or its also likely that I would have scaled in as it was dropping, and then been "stuck" for years while waiting for a break even exit.

Now, its also likely that I would have done my research like I did this time around and saw the light, and maybe even made huge gains in some alt coins, so its hard to say.

But I do think that the forced hodling of Mt. Gox is likely the strategy that has outperformed almost everyone else who was around back then (with the exception of guys like Max Keiser or the Winkloss twins, or Andeas A). I have no idea what the average payout is for the Mt. Gox customers, but I'm sure its likely measured in whole bitcoins, if not bitcoins in double digits. So its kind of ironic that the smartest thing to have done was to have had your bitcoins inaccessible for over a decade.
 
I have thought so much about what I would have done if I bought Bitcoin back at $100 when I first considered but got scared because of all the ties with the drug industry.

Seeing how my trading in the futures markets had gone these past few years, its likely that I would have sold after just doubling my money, and then seeing it run up to $1000 very quickly, I would have been too scared to get back in. Or its also likely that I would have scaled in as it was dropping, and then been "stuck" for years while waiting for a break even exit.

Now, its also likely that I would have done my research like I did this time around and saw the light, and maybe even made huge gains in some alt coins, so its hard to say.

But I do think that the forced hodling of Mt. Gox is likely the strategy that has outperformed almost everyone else who was around back then (with the exception of guys like Max Keiser or the Winkloss twins, or Andeas A). I have no idea what the average payout is for the Mt. Gox customers, but I'm sure its likely measured in whole bitcoins, if not bitcoins in double digits. So its kind of ironic that the smartest thing to have done was to have had your bitcoins inaccessible for over a decade.

The tragedy is that to hodl bitcoin from such an early stage is to not need the money to begin with

Andreas spent much of his bitcoins acquired very early on expenses. An anonymous bitcoiner made him a "millionaire" in 2017 bull market by sending ~70 bitcoins. It was all documented on Twitter at the time it happened, he was extremely grateful

Winklevoss twins bitcoin onboarding is extremely fascinating, but so is Wences Casares, whose family fortunes were destroyed in Argentina twice, and immediately understood bitcoin's importance very early on


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https://www.coindesk.com/business/2...now-has-50-of-his-personal-wealth-in-bitcoin/

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Bruce Fenton video speech at the height of the bull market Dec 2017 was very informational on the subject


 
The tragedy is that to hodl bitcoin from such an early stage is to not need the money to begin with

Andreas spent much of his bitcoins acquired very early on expenses. An anonymous bitcoiner made him a "millionaire" in 2017 bull market by sending ~70 bitcoins. It was all documented on Twitter at the time it happened, he was extremely grateful

Winklevoss twins bitcoin onboarding is extremely fascinating, but so is Wences Casares, whose family fortunes were destroyed in Argentina twice, and immediately understood bitcoin's importance very early on
Wow... I love all this history... thank-you for sharing.
 
**** NOT FINANCIAL ADVISE ****
  • MSTR to $50k-100k (split adjusted) resulting in those 10-20 shares of MSTR to be worth $500k-$2M

**** Not Financial Advice ****

MSTR announced a 10-1 split, so price levels mentioned early in the thread are lower by a factor of 10

https://www.bloomberg.com/news/arti...microstrategy-to-conduct-10-for-1-stock-split

  • owners of 10 mstr shares prior to the split record of date* will have 100 shares after the split
  • 100 shares of MSTR will provide the ability to sell covered call options on a high premium high volatility mstr stock, nfa, but there are market players who look for these opportunities as a way to earn "passive income"
  • I have not looked into it, but if mstr is increasing the number of shares above the split count, it might be planning to sell shares to buy more bitcoins as it has done in the past

------------

My current mstr leaps call options position is now break-even. Still have plenty of time and plan is still to sell next year 2025 (i.e. tax implications if any)

The position was down almost 50% (-$77k) a week ago when bitcoin price was down in the low $50k

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**** Not Financial Advice ****

MSTR announced a 10-1 split, so price levels mentioned early in the thread are lower by a factor of 10

https://www.bloomberg.com/news/arti...microstrategy-to-conduct-10-for-1-stock-split

  • owners of 10 mstr shares prior to the split record of date* will have 100 shares after the split
  • 100 shares of MSTR will provide the ability to sell covered call options on a high premium high volatility mstr stock, nfa, but there are market players who look for these opportunities as a way to earn "passive income"
  • I have not looked into it, but if mstr is increasing the number of shares above the split count, it might be planning to sell shares to buy more bitcoins as it has done in the past

------------

My current mstr leaps call options position is now break-even. Still have plenty of time and plan is still to sell next year 2025 (i.e. tax implications if any)

The position was down almost 50% (-$77k) a week ago when bitcoin price was down in the low $50k

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Excellent post based on personal expertise.
Be it right or wrong... ---> T/u.
 
It seems my reputation is a one-hit dumb luck, unskilled trader-investor... but I do have my trades publicly posted on here

I trade unconventional, which is to say I'm not an active trader looking at chart patterns

I look for trade-potential, and then I'll put the trade if I believe it's worth putting a risk-capital and that the payoff is "high enough"

Bitcoin is not a trade for me at this point. It's a life-savings, unit of account

In a world where everything is abundant, especially fiat, Bitcoin should go up forever in value against all other assets especially fiat

Revisiting this thread... meme coins as store of value

**** NO FINANCIAL ADVICE HERE, JUST FOR ENTERTAINMENT PURPOSES ONLY ****

Meme coin Popcat hit all time high today, while Eth and Btc are not at ath, yet

I got out of my Popcat about a month ago due to Orca delisting it for a few hours and I got scared it was a rug-pull,

I started getting back my Popcat holding last week, and got my full position back today, albeit much higher price from where I sold (today's tranche price, not last week's)

**** NOT FINANCIAL ADVICE ****
**** POST IS FOR ENTERTAINMENT PURPOSES ONLY ****

I only have 2 active trades MSTR call options and Popcat meme coin so I'm bringing the Popcat updates on this thread
  • MSTR plan to close position in the 2nd half of 2025
  • Popcat plan to lighten position if price goes to $2
(Sol holdings is just a temporary storage of value as a consequence when DeFi Pendle staked sUSDe matured)

meme coin prices crash harder when bitcoin goes down, and also shoot up faster when bitcoin goes up

Not all meme coins are the same, the important qualities are liquidity, available markets/exchanges and the bonus is if it has perpetual futures market (for big traders to hedge their positions)
  • VC's and wall street traders and institutional traders are trading the meme coin markets
I think meme coins are the equivalent of jewelry or fine art, has no real utility but can be a good store of value

https://www.popcatsolana.xyz/

https://coinmarketcap.com/currencies/popcat-sol/#Markets


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The tragedy is that to hodl bitcoin from such an early stage is to not need the money to begin with

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Hah! I've seen that book at the pubic library for ages now, haven't got it due to all the other books I am going through, and also it looked like some cheap self-published crap (yes, I know you shouldn't judge a book by the cover).

I just noticed after reading your post that the same author wrote this book which I picked up yesterday:

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Hah! I've seen that book at the pubic library for ages now, haven't got it due to all the other books I am going through, and also it looked like some cheap self-published crap (yes, I know you shouldn't judge a book by the cover).

I just noticed after reading your post that the same author wrote this book which I picked up yesterday:

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You should pick up that book it's an excellent read and the author knows how to tell a great story.

Don't let the title mislead you into having any biases

For context, the book came out in May, 2015 in the middle of the bear market, price of bitcoin had crashed from $1,200 to less than $200

Wences Casares is the same dude that orange pilled Bill Miller and many in Silicon Valley and is the same dude that wrote this article in 2019

https://www.kanaandkatana.com/valua...11/the-case-for-a-small-allocation-to-bitcoin

Nathaniel Popper had turned somewhat negative recently and has kept distance from Bitcoin (mentioned on WBD episode). I used to see bullish bitcoin posts from here all the time years ago

Peter (WBD) thinks it's because as early as he was in the space, he did not actually believe in it to actually invest and missed opportunity

There are no free passes on Bitcoin, you gotta take the risks with capital and experience the pain of bear markets...

It's much easier to be an ignorant critic with nothing at risk and continually shit post for years and years regurgitating old stuff...

the payback will be in the legacy they leave to their family and heirs, 10-20 years from now, they will have the regrets perhaps on their deathbed perhaps not, or perhaps as they answer questions they've had to answer many times before...

I certainly won't have any regrets 10-20 years from now
 
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