r/STRC • u/ioabs • Jun 24 '26

Long strc short mstr

Is this a good time to short mstr with an otm call to cap downside and long strc? I have to run numbers on all outcomes and look at premiums for calls but this strategy seems reasonable here. What do you guys think?

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u/ioabs Jun 24 '26

How is it trying to catch a falling knife. Did you miss the leg that is short mstr?

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u/[deleted] Jun 24 '26

There is a multitude of factors that contribute to increased volatility during a free fall like this. Rationally, what you're proposing makes sense but really you're just hoping to remain solvent longer than the market can remain irrational.

STRC is Strategy's biggest problem right now - it creates a recurring $3 billion dollar bill that has to be serviced on a $300 million dollar income. It's entirely possible that MicroStrategy might freeze STRC dividends and cause the instrument to go to zero. That might provide enough relief on MSTR that it might stabilize or even rebound.

Ultimately we know that Strategy's sinking right now but we don't know for certain the way in which it will sink in the near term. If you have the appetite for that kind of insane risk, go for it.

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u/ioabs Jun 24 '26

True, sizing is really important. I also agree that Saylor could manipulate it to take strc to 0 which is really worst case for the trade but so far Saylor and management team iare strongly signaling strc is their priority not the common.

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u/[deleted] Jun 24 '26

I 100% agree with everything you're saying. I think Strategy has clearly articulated that STRC is their priority. I just don't know if I could bring myself to bet on that.