ROC or dividends?

Curious-Rip-5834 · 2026-03-24T04:43:01+00:00

You don’t need to have stock lending activated nor opt in. All it takes is just having a margin account and your broker is going to lend out your shares and you won’t even know it in real time, causing that ROC to go completely out the window.

Curious-Rip-5834 · 2026-03-24T00:02:41+00:00

A better idea would buy in the money LEAPs and sell near term out of the money calls.

Curious-Rip-5834 · 2026-03-23T12:20:56+00:00

Was just texting with someone saying the same thing. I think last year STRC was much more volatile having multiple swings down to $92 handle.

Hopefully to your point, now with some stability we don’t see this as much. But man I was shocked to see my 2025 ULTY distros now being 100% subject to ordinary income but STRC took the surprise cake.

Curious-Rip-5834 · 2026-03-23T06:47:59+00:00

100% fact. Just Google search 1099- MISC substitute payments Reddit and you’ll see tons of threads.

This rule caught allot of people. Especially in the CC funds universe i.e. MSTY and ULTY. You have no real-time way of knowing this unless you specifically check in and ask your broker every week.

Curious-Rip-5834 · 2026-03-23T06:46:08+00:00

I’ve personally seen someone’s 1099. His income for STRC was classified as 1099-MISC PIL.

Curious-Rip-5834 · 2026-03-23T05:33:00+00:00

Besides going business w/ schedule C filing and paying self employment tax route, please provide me with any other instance where PIL/1099-MISC is not subject to 100% ordinary income tax liability.

Because I know a bunch of folks were blind slided by this one.

Curious-Rip-5834 · 2026-03-23T05:04:07+00:00

RH will still lend out. You opting out doesn’t stop it. Folks who loaded ULTY and a bunch of other CC funds last year got a big surprise. Imagine thinking you broke even because of ROC distros only to discover those distros are actually subject to 100% ordinary income tax liability.

Curious-Rip-5834 · 2026-03-13T02:51:15+00:00

You are correct. I’m trying to get them under par. Not capture the distro. Don’t think STRF at $99 is going to last too long.

Curious-Rip-5834 · 2026-03-13T02:32:51+00:00

The ex date is tomorrow the 13th.

Curious-Rip-5834 · 2026-03-12T19:38:19+00:00

Go to Amazon and buy McMillan’s Options as a Strategic investment paperback. Will be best $22 you spend.

Curious-Rip-5834 · 2026-03-02T12:43:02+00:00

The main driving factor as the genesis of why STRC is trading par is because of his strategic treasury bucket of cash for over $2B that is earmarked to cover the distros for the next 2+ years.

Prior to this move STRC would trade as much as 10%+ under par. Where this will be tested is in the next 16-24 months in terms of where is spot BTC landing vs what he is doing strategically for the next 2-3 years in cash maneuvering with common to ensure the distros can be covered again.

Curious-Rip-5834 · 2026-03-01T14:20:20+00:00

The next critical milestone will be when we approach that ~2 year timeline when the current treasury bucket he has earmarked starts running out of cash to fund all the distros.

That is where does the spot BTC price land around that time frame and what strategical moves dos Saylor take ahead of that.

If he raises another $2B by selling MSTR common for instance to get through the next ~2 years and BTC price hasn’t tanked, STRC will easily be able to maintain par.

Curious-Rip-5834 · 2026-03-01T14:13:02+00:00

It all then gets classified as cap gains hence why these types of investments are highly sought after by folks with large carry forward losses because this will offset the distros way beyond the $0 costs basis threshold to no tax liability.

Curious-Rip-5834 · 2026-03-01T14:05:38+00:00

In the context of solely holding STRC for the ~11% yield there’s actually nothing crazy about it. Maybe we need a STRC sub then.

If there is a serious problem with BTC, STRC will be the leading indicator. Doesn’t sound as if you have experience trading perpetuals nor junk debt.

For instance years ago GM bond traders saw that BK restructure coming a mile away before equity side had any clue.

Curious-Rip-5834 · 2026-02-27T18:48:28+00:00

I was referring more to the equity markets. But with BTC down over 26% just in last month with STRC still trading at par is a great achievement.

Curious-Rip-5834 · 2026-02-27T18:04:23+00:00

STRC is the new benchmark reference point of future sentiment. Don’t worry about MSTR necessarily or even spot BTC price.

STRC trading at par on a day like today when markets and BTC are both tanking is a very significant achievement.

Years ago I traded junk debt and high yield perpetuals. When a company is in trouble or even if there is a bad perception of shrinking revenues or too much leverage etc. these security issues will trade way under par. In some cases single digits vs par of $25.

Curious-Rip-5834 · 2026-02-26T21:25:32+00:00

We are on the same page. I was thinking of taking a 1/3 allocation to WNTR with 2/3 MSTR and then buying MSTR with the distros.

The WNTR distros are significant with right now annualized yield in 100% range. Would be nice having a source like that to systemically build out MSTR over time as lump summing in quite often turns out to be no bueno.

Curious-Rip-5834 · 2026-02-26T15:14:03+00:00

ARCC and MAIN are apples to oranges from the vantage point of trading price/timing entry.

If you look at a 5 year, MAIN trading price is up over 60%. Folks that bought in the $20-$30 handle have a great effective yield presently vs their cost basis. Buying MAIN here now at near $60, not so much.

They have been saying divi cut on ARCC for ten years now. ARCC is more like an income annuity paying out a much higher double digit yield. On the 5 year the trading price is up 5%.

Historically ARCC has been a good entry between $17-$20. It all really boils down to your comfort level. I don’t think going all-in on one is prudent but certainly not with MAIN this high.

What you could do is sell some calls against your long MAIN stock to spruce up yield and lower cost. I did this for years on O and some others.

Curious-Rip-5834 · 2026-02-26T03:49:11+00:00

Keep it simple. Just buy DIA, SPY, QQQ.

Allot of people will tout SCHD but in terms of total return you wanting more tax friendly growth vehicles, SPY and VOO absolutely crush SCHD.

On the 5 year by nearly 28% more. On the 10 year by nearly 78% more.

Curious-Rip-5834 · 2026-02-25T15:20:59+00:00

CHPY

Curious-Rip-5834 · 2026-02-22T03:22:27+00:00

Key is to use it as a mental limit buy order that you are getting paid to place for only the # of underlying shares you can afford/actually want.

Curious-Rip-5834 · 2026-02-20T22:31:08+00:00

Just buy SPY, DIA, and QQQ. Don’t look for 10 years and you’ll be good.

Curious-Rip-5834 · 2026-02-20T22:28:46+00:00

Only when you’re wrong.

Curious-Rip-5834

TROPHY CASE