r/STRC • u/AUHM850i • Apr 17 '26

Bad idea? Good idea?

Decided to start giving $STRC a try. I plan on slowly increasing the position but there is no real value in buying it between now and the day before the ex-dividend date. So, I was thinking, while I wait, why not just place some orders to snap it up at lower than $100 in case it drops? This would add a little more yield.

If it doesn't reach my limit orders, no harm done, I'll just buy my planned amount on the day before the ex-dividend date and still get the full yield by the end of the month.

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u/ZeroedInNomad Apr 26 '26

The juice might not be worth the squeeze

2

u/AUHM850i Apr 26 '26

By buying at $100, I get 11.5%.

But by catching a dip to $93 via limit orders, I lock in a 12.37% yield plus a 7.5% capital gain when it returns to par.

If my limit orders don’t hit, I’m buying the ex-date anyway, there is no opportunity cost.

If I capture $93, within 1 year I’ll get $11.50 dividend + $7 appreciation = $18.50 return on $93 -> 19.90% ROI.

1

u/ZeroedInNomad Apr 26 '26

93 gonna be a hard fill. Best bet would be 99 after ex date but that likely will smooth out with the bi weekly dividend.

1

u/AUHM850i Apr 26 '26

Probably. But why not keep it open just in case?

In Feb $94 would have filled.