MSTR Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on MicroStrategy Inc.. Expected premiums, strike selection, real example trades, and the four strategies that actually work for MSTR.
Why trade options on MSTR?
MSTR (MicroStrategy Inc.) is a large-cap technology name with an elevated share price and excellent options liquidity. Implied volatility on this ticker is elevated, so option premiums are rich — but the same volatility cuts both ways and can move the stock hard in either direction. It pays no dividend, so every dollar of income must come from the options you sell.
Typical monthly premium collected on MSTR runs around 3.5-6.0% of capital, which annualizes to roughly 42-72% if you sell new contracts every cycle. Capital required to run a single contract wheel on MSTR is $20,000+ — the share price and the 100-share lot size set the minimum, not the strategy.
Live Data Snapshot
See the full MSTR case study at /stocks/mstr-covered-calls-cash-secured-puts for a sample trade and full strategy breakdown.
Four strategies that work on MSTR
MSTR Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the MSTR Covered Call guide →MSTR Cash-Secured Put
Sell a put backed by cash so you either get paid to wait or acquire the stock at a discount to today's price.
Read the MSTR Cash-Secured Put guide →MSTR Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the MSTR Wheel guide →MSTR Poor Man's Covered Call
Replace the 100 shares with a long-dated deep-ITM LEAPS call and sell short-dated calls against it to reduce capital.
Read the MSTR Poor Man's Covered Call guide →MSTR options FAQ
What is the best strike price for a MSTR covered call?
On MSTR, target 12-18% out of the money at 0.10-0.20 delta. On a very high-volatility stock like this, closer-to-the-money strikes chase premium but spike assignment probability to uncomfortable levels.
How much premium can I collect selling calls on MSTR?
Typical monthly premium on MSTR is 3.5-6.0% of position value, annualizing to 42-72% when you roll every cycle. Earnings months can pay 2-3x the normal rate because of elevated IV.
What is the best delta for a MSTR cash-secured put?
A delta of 0.10-0.20 on MSTR balances premium income with assignment probability. Lower delta is warranted here because a single gap down can drop the stock 10%+
How much cash do I need to sell a put on MSTR?
Cash required is 100 × strike price. For MSTR, that's roughly $20,000+ per contract at a typical strike. Most brokers let you use margin, but for a true cash-secured put you set aside the full amount.
Is MSTR a good stock for the wheel strategy?
MSTR is excellent for the wheel because of its penny-wide spreads and elevated IV (high premium, higher assignment risk). No dividend means all your return comes from premiums and price appreciation.
Can you run a poor man's covered call on MSTR?
Yes. Buy a 0.80+ delta LEAPS on MSTR dated 12-18 months out as your synthetic long, then sell short-dated calls 12-18% above the stock at 0.10-0.20 delta. Capital tied up drops from $20,000+ to roughly 30-50% of that — a meaningful improvement when the share price is an elevated share price.
What expiration should I use for MSTR options strategy trades?
Use 14-28 DTE so you can react to sharp IV crushes and moves as a default for MSTR. Shorter expirations let you react to IV resets and price gaps.
Is MSTR suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need.
Run the numbers on MSTR yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on MSTR with live quotes.
Open the MSTR Strike Finder →