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The safest play for gay bears (like me) is puts on MSTR

u/KleinerFuchs14 · Reddit — r/wallstreetbets · May 31, 2026 at 09:47 · ⬆ 33 pts · 💬 26 comments  | View on Reddit ↗
AI Summary

Summary

  • Post argues that MicroStrategy (MSTR) is a crypto Ponzi scheme, burning cash on dividends and facing a likely forced sale of Bitcoin.
  • Author recommends buying MSTR $130 put options expiring June 17, 2027 as a "safe bear" play against the company's unsustainable model.
  • Quality assessment: Speculation with some fundamental reasoning (dividend cash burn, debt repurchase), but relies heavily on subjective crypto market view and lacks deep financial modeling.
Score 33
Comments 26
Upvote % 75%
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Ideas
u/KleinerFuchs14 Reddit r/wallstreetbets
MSTR burned through two-thirds of cash paying dividends and completed a $1.5B debt repurchase, while holding 843,738 BTC. The company’s “never sell Bitcoin” promise becomes untenable if cash flow dries up, forcing liquidations that would crater both BTC and MSTR stock. A structural short via deep-out-of-the-money puts capitalizes on the likely collapse in MSTR’s stock price as the crypto house of cards folds. Bitcoin price could rally further, MSTR could raise new capital or issue more debt to avoid selling, and the long-dated put (Jun 2027) carries high time decay and low liquidity.
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This Reddit post, published May 31, 2026, features u/KleinerFuchs14 discussing MSTR. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/KleinerFuchs14  · Tickers: MSTR