Shorting Bitcoin via MSTR

If one wants to hedge against the current ETF inspired rally in Bitcoin without selling their Bitcoin a good candidate to 'short' would be MSTR (Microstrategy). The stock is "hard to borrow" meaning it is difficult to short the shares but the options chain is relatively liquid enough to accomplish the bearish thesis.

Technically, both Bitcoin and MSTR are hitting major Weekly Resistances today at the same time. Bitcoin is hitting its COVID low > ATH 50% Retracement level at 36439 while MSTR its November 2021 > May 2022 trend 50% Retracement at 512.73.


Expressing the trade with Puts is not only perhaps the only way for most traders to do so but also advantageous with the current Implied volatility being "low" relative to the last year. This means that if the trade goes in favor of the position IV should rise and add to the profitability.