MSTR Short-Dated Options Losses Highlight Leverage & Volatility Risks for Canadian Investors

(Reddit) A retail trader wiped out most of their portfolio via repeated short-dated MSTR call trades, likely using margin in Canadian registered accounts (TFSA/RRSP). Comments criticized margin use for volatile Bitcoin proxies like MSTR, noted full portfolio concentration risk, and suggested longer-dated LEAPs as an alternative. Other users shared similar losses in Canadian accounts (e.g., FHSA wiped out via NVDA calls), labeling the behavior as gambling.

MSTR’s stock plummeted ~60% over four months in 2025 due to Bitcoin weakness and index inclusion concerns (potential Nasdaq-100/MSCI removal [5,6]). Its beta of 3.37-3.78 amplifies options risks, with short-dated calls suffering accelerated theta decay (rapid value loss in the final 30 days [8]). Canadian registered accounts restrict complex options but allow leveraged call buying; record market margin debt ($1.023T, up 26.1% YoY) indicates broader leverage exposure [9]. 0DTE options account for 56% of retail volume, adding to volatility [9].

Reddit user experiences align with research: leverage + short-dated options on high-beta assets lead to catastrophic losses. Canadian account restrictions don’t prevent leveraged call buying losses, as seen here. Index inclusion fears and Bitcoin volatility (key research points) exacerbate MSTR’s swings, making short-term options riskier—comments suggesting LEAPs are supported by theta decay mitigation research.

: MSTR index removal ($9B outflow risk [5]), Bitcoin’s volatility [1], accelerated theta decay [8], leverage misuse in restricted accounts, systemic 0DTE volume risks [9].
: Use LEAPs instead of short-dated calls, avoid margin in Canadian registered accounts, monitor MSTR index inclusion updates [5,6].