Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR).
The bitcoin (BTC) development company MicroStrategy (MSTR) stands out as one of the most volatile and actively traded equities on the market today. Investors and traders are often drawn to stocks that exhibit significant fluctuations, as they present opportunities for high-volume trading.
Despite having a market capitalization of less than $100 billion, MicroStrategy’s trading volume rivals some of the largest technology companies, often referred to as the ‘magnificent seven.’ Each of these tech giants boasts a market cap of at least $1 trillion, which is over ten times greater than that of MicroStrategy. Companies such as Apple (AAPL), NVIDIA (NVDA), and Microsoft (MSFT) have market capitalizations exceeding $3 trillion, illustrating the scale of these formidable players.
Data sourced from Market Chameleon indicates that between December 2, 2024, and January 7, 2025, MicroStrategy’s daily trading volume reached an average of nearly 24 million shares. This impressive figure positions MicroStrategy sixth among the major tech stocks, surpassing Microsoft’s daily volume of 20 million shares and META’s (META) 12.2 million daily shares. In this highly competitive landscape, NVIDIA emerged as the clear frontrunner, with Tesla (TSLA) in a close second.
Year-to-date, MicroStrategy has experienced an uptick of approximately 14%. The stock’s 30-day implied volatility (IV), a measure of the market’s expectation of future price movements, currently stands at 104. This indicates that traders anticipate substantial price swings in the near future. The IV is derived from options pricing, and when comparing MicroStrategy to the iShares Bitcoin Trust (IBIT), which has an IV of around 60, it becomes evident that MSTR is 1.7 times more volatile than IBIT.
As of January 7, data reveals that MicroStrategy possesses the highest IV of 105 among the magnificent seven tech stocks, positioning it as a highly dynamic option for investors. Tesla follows closely, with an IV of 71.0 according to recent Market Chameleon data.
