Flipping and Dividend Capture

This quick note is to add a page for discussion for “flipping” issues and for “dividend capture” techniques.

We all discuss these types of things all the time so it is way past time to add a area for discussion for of techniques you use for “flipping” (a quick hold and resale for profit-or occasionally a loss) and for “dividend capture”–buying with the intent to secure a dividend and probably sell shortly there after.

481 thoughts on “Flipping and Dividend Capture”

  1. Flipped today: sold eica @ $22.71 and bot eccc @ $20.77 .

    Got almost $2 in cash now, increased the yield from eica’s 5.5% to eccc’s 7.8%, but extended the terms from 2026 to 2031 (ytc is irrelevant because although both are callable in 2023, the ytc are 15% and 20% respectively).
    In addition, I pocketed more than $1 in short term capital losses.

    I understand I acquired extra risk in the significant longer duration from 2026 to 2031 (not negligible with CLOs) but still, looks too good to be true!. Maybe I was particularly lucky in today’s prices due to market craziness?

    Or am I missing something else?

    btw: eccc is in Tim’s medium dur. portfolio.

  2. Another swap between practically identical securities:
    sold wfc-l @ 1211 and
    bot bac-l @ 1190

    Same rationale: stay similarly invested, harvest capital losses, and pocket a few bucks on the way.

    Given that I believe this is quite profitable on the long run, given that there are so many “sister” securities, and given that many of our held positions have significant losses, I wonder why few are commenting on this. Either most do not do it, or simply do not wish to comment?

    1. I do it all the time to stack nickels, the gains are usually rather small but they add up since you rarely lose money on this type of trade. To capture some of them you have to be watching the market often or you’re pateintly playing the spread which some people find annoying.
      This trade looks about even other than for the tax advantage. Just missed ex-div and slightly lower dividend but WFC-L typically trades at a slightly higher dividend.

      1. Martin,
        You are right, it was meaningful mostly for tax purposes.

        Just did another one, with good tax harvest and bit more cash pocketed and a bit more difference in terms:
        Sold prif-g @ 23.77 and
        bot prif-i @ 22.87.

        Similar yields (~6.7%) but prif-g is callable 3/23 maturing in 6/26,
        while prif-i has longer dates: callable jun/24 maturing in 6/28.

        1. dd, where do you think the line is between substantially identical for wash sale purposes? in your case, prif-g vs prif-i you note call and maturity date differences. JPM-K vs. JPM-M, different call date by 3 months, and a different coupon. Sufficiently different? Thanks, Jim

          1. It’s a very high standard. Certainly different coupons and maturities and call dates are very very different. The only two stocks I can recall being ruled substantially identical to each other was in a stock for stock merger when the merger was all done but the stocks still traded a few days until it closed.

          2. different issues of the same company have not been considered a wash sale. They are not exactly the same. Maybe they could be considered “substantially similar” in some cases but they have flown under the radar so far.

    2. My favorite pair of issues for swapping is TANNL and TANNZ. As another commenter noted, their ex-div dates are six weeks apart, so they are 180 degrees out of phase. In most other respects, they are very similar. They are nominally 8% issues, so the dividend is 50 cents. To judge price between the issues, I use the following rule: the issue that will next go ex-div should be worth 25 cents more than the one that most recently went ex-div. As of today’s close, TANNL was at 25.29, while TANNZ closed at 25.59. At least the way I look at it, that’s 55 cents of mispricing, since TANNL should be worth 25 cents more than TANNZ, not 30 cents less. I bought a little more TANNL this afternoon at 25.29, and I might buy some more tomorrow if I can get it at that price or lower.

  3. A few days ago RITM-A and RITM-D were trading around the same price yesterday. Now they are $1,30 apart. Good swap opportunity for anybody who owns them. I swapped 800 shares today but not at the top price.

  4. A swap today:
    sold tds-u @ 19.73 and bot tds-v @ 18.55.

    tds-u pays 6.63% (current yield: 8.4%) callable on 3/26 and
    tds-v pays 6% (current yield: 8.1%) callable on 9/26

    The swap extends 6 months the call time and sacrifices 0.3% in yield, BUT:
    gives me a short term capital loss in tds-u while pocketing $1.18 in cash now.

    Was this a good swap?

    1. I generally go with the higher yield when that far below par call isn’t much of a factor. Unless you need the loss for tax reasons, though I have enough losers this year that’s not going to be an issue.
      One more consideration is how the market has been pricing them. Even if I like one better, if the market disagrees I might swap when the prices divergence expecting to gain it back. Haven’t been following TDS so I don’t l know.

      1. Martin,
        Although I don’t have the day-to-day data, over time tds-u seems to be priced higher than tds-v , which makes sense as it has a higher yield, so flipping back may cost.

        I guess many of us have enough losers this year, which can be materialized as cap. gain losses by selling (or swapping) them, and can be carried over (after the $3k) to the following years.

    2. Another swap today, practically keeping the same investment, but harvesting some capital losses while pocketing some $:
      sold bip-a @ 16.70 and
      bot bip-b @ 15.95

      bip-a is in Tim’s portfolio, but bip-b is practically equivalent yielding 7.8% callable Feb 2026, vs bip-a yielding 7.6% callable Oct 2025.

      At this pace, I will be accumulating capital losses so that I will not owe taxes on capital gains for some years….What’s not to like?

      1. dd, I have been buying both this week in dribs and drabs. Preferreds slotted BBB-, paying near 8%, and 85% of debt non recourse. I like the company enough to overlook K-1 which is of minimal problems anyways.

  5. Grid my friend, wanted to get your thoughts on PCG.A, I am out right now but have bought and flipped this utility preferred an incredible amount of times through the years. The common equity looks strong 💪🏻, but I seem to not be able to pull the horribly run and in a radical state scary security trigger. Any thoughts would be greatly appreciated from all here, I am Azure

    1. Azure, On last round I bought at a bit over $20 then some under $20 then flipped out for a quick 40 cent a share gain or so. Or should I say the price just happened to be up when I sold. As soon as I saw the Feds launched yet another criminal investigation of PCG for the latest huge Mosquito fire, I sold. It just never ends and this is a big fire. The fire had been going on for so long I assumed PCG was safe, but yet they are looking at them again.
      The common got a recent bump because they were included recently into S&P 500 Index so that bumped it. But Im out and wont be in again until this fire thing is cleared up. PCG preferreds have been great trades for me over the recent years, but Im just worn out now. And as well all know there are a lot of things that have dropped (including what I own unfortunately, ha) that doesnt have that hair on it.

  6. How do people here feel about flipping DCP-B and C ?
    I didn’t catch the low, but up over a 1.00 on the B and ex-date is getting close.
    Conflicted as to if there will be more opportunities to flip these several times as they are at least a year out from going fixed to floating?

    1. Haven’t been following that one. Don’t want too many K-1 flips. Based only on price movement, market conditions, and low float rate I wouldn’t oppose a sell order at this time,

  7. Dividend captures are abundant at end of quarter, But if recent volatility continues it could drown out these small movements, making it hard to tell if the capture strategy is working. Here are the ones I’m watching

    29th – FBRT-E CHMI-A/B EFC-A/B SEAL-A BHR-D SRG-A(risky) HCDIP(monthly)
    30th – AGNCO/N/M/P NYMTM/N/L/Z GPMT-A VIASP TANNZ ACR-C XOMAO/P
    not yet announced – DX-C RTLPP/O

    July 7th – CIO-A
    8th – DBRG-H/I/J
    11th TWO-A/B/C
    13th NREF-A
    14th NRZ-A/B/C/D FHN-B(6 month)

    1. I randomly picked TANNZ for a closer look. All data are from Marketwatch, and all prices are closing prices. Over the last four run-ups to ex-div date, here’s what happened:
      Business day, average closing price
      x + 2 25.865
      x + 1 25.91
      ex-div 25.805
      x – 1 26.245
      x – 2 26.23
      x – 3 26.22
      x – 4 26.165
      x – 5 26.1175
      x – 6 26.195
      x – 7 26.1375
      x – 8 26.235
      x – 9 26.175
      x – 10 26.0525
      x – 11 25.8875
      So the best strategy over those four cycles would have been to buy eleven business days prior to ex-div, and sell three business days prior to ex-div for an average profit of 33.25 cents. That’s better than buying on the day prior to ex-div, selling the day after ex-div, losing 33.25 cents but pocketing 50 cents of dividend for a net gain of 16.75 cents, on average. Of course, the first strategy takes 8 business days and the second takes two, so if you annualize, the div capture is better.
      This cycle isn’t following the previous pattern. x-11 was 6/14/2022 and the closing price was 25.60. x-4 was 6/24/2022 and the closing price was 25.60 again.
      I am not a financial advisor and I can not predict the future.
      I do not currently hold a position in TANNZ.

      1. Good study though small sample size.
        I’ve heard various theories about the best time to buy and sell. For me the answer is always “whenever you get a good price.” It’s really about trading on price movement. I find more opportunities around the time of dividend capture so I specifically look for them. I don’t recommend trading on specific dates at whatever price, that’s only part of the puzzle. Because of the spread you might not get the last price anyway.

  8. SCHW-D – the Schwab 5.95% coupon QDI preferreds seems to a decent buy at or just below $25. Has been callable but not yet called to my knowledge. Ex-divd May 16, 2022

  9. For those of you that like to swing trade preferreds, take a look at a chart of EFSCP. The bid ask spreads can be wide, and volumes low, but price swings of a few percent per day are not uncommon.

    1. Trying to avoid low dividend issues at a time like this. When stacking small gains my first priority is to avoid big losses. I like playing the spread during quiet patient times. More power to you if its working.

      1. Agreed. I’ll stick with swing trading TDS -U and V which often have large spreads and currently yield 7.5%

  10. I would like to put a few unusual strategies out there for consideration: (1) “reverse dividend capture”; short a low coupon perpetual the day it goes ex and buy it back before it goes ex the next time. The trend is your friend. (2) Possibly counterproductive, but you could be long the same issues and collect the albeit moderate coupon of the perpetuals without price risk. Of course two brokerage accounts are needed to avoid being short the box.

    1. After rethinking it over, although option {2) above would be low risk, for overall portfolio performance, option (1) has a chance, if rising rates keep dragging the price of all fixed income lower, for the realized gains you would receive from option (1) to help mitigate the unrealized losses you would experience with the rest of your fixed income portfolio, and help keep your account value more constant. The high convexity experienced with low coupon perps would help give you “more bang for the buck”

    2. I’m not so sure that using two brokerage accounts gets around the ‘short against the box’ rule – but I won’t swear to it.

      I’ll offer unusual strategy (3). I’ve been short about 30-35% of the value of my long holdings (same issuer). When a short position has a gain, I flip to another short position, hopefully in the same issuer. Had a good one today at +66 and +1.19, softened the damage elsewhere.

  11. Major flip in NYMTZ today. down to $3.30 lower than NYMTN before breifly jumping to within $2.00 of it. I caught some but not all of it.
    Been playing RTLPP RTLPO swaps now that SB-s cooled off though they are still worth something. Rumor of a call not taken seriously since it’s below stripped par.
    Been in MITT-B for a long time finally got a swap to MITT-A today. Need more of those to cope with the drop.
    Fully in NRZ-B now that NRZ-D is 80-90 cents higher. Hopefully I’ll get to swap back unless investors are finally wising up.

    1. Divi captures have been going pretty good. I should do more but dont push it.
      I already had an oversized NSS position but bought 400 more yesterday just to gamble on an exD flip. Was able to sell that lot just 7 cents cheaper than I bought yesterday pocketing the 42 cent interest payment. Still keeping the regular position just because that Libor rise is really going to pop the yield here. Though I doubt the price does much if anything being its past call.
      Several issues have jumped past week so I sold most of those and entering others. Im not as keen on my closing purchase today as it was still dropping and I got at $26.08, but going to give DDT a run for the money again as it will go exD in about 2 weeks.

      1. I broke rank and did some of my selling before ex-div this time prices were too good to ignore. The quarter ending issues I held on to didn’t do much today. Already sold some of next weeks batch too. Not believing in this rally.

    2. Martin, Do you have access to a charting platform that shows the price difference between 2 securities? Scottrade used to have that ability but it is gone. I haven’t found anything to replace it.

      If anyone has any suggestions, I would appreciate it.

      1. No, I make my own watch lists and follow them. After making the initial calculations I can tell just by looking at the changing prices. There’s a practical limit to how many things I can keep track of so I’m always scouring for the best potential bargains to follow and dropping off my list the ones that aren’t doing anything. I don’t like to automate too much of the process because I stop thinking if the program is thinking for me.

      2. kapil –

        IBKR offers the ability to set up long/short combos which can be graphed as well. Don’t know if it’s still available but IBKR used to offer a DDE link which updated an Excel spreadsheet in real time (create your own pairs in the spreadsheet).

        A sluggish alternative is to set up a spreadsheet and cut and paste a live quotes watch list into it.

  12. Dividend captures seem small now compared to the other wild gyrations going on. Yet I’m still playing them amidst the noise. End of quarter is a busy time.

    CIM preferreds ex-div on the 24th,
    all Gabelli’s coming up soon.

    End of month:
    AGNC’s NYMT’s CHMI’s DX-c GPMT-a VIASP TANNZ AXS-e

    early April
    RTLPP/O XOMAO/P DBRG-H/I LFMDP GNL-A/B NREF-a

    Plus many others I’m not following. My attention span is only so big.

    1. MER-K was an easy one day divi capture as no brokerage seems to know how to post it. It went exD Friday, but closed Thursday at 26.28. Closed Friday at $26.10 off a 40 cent interest payment.

  13. BHFAP with 6.6% coupon goes ex-divd tomorrow and a likely good dividend capture candidate at these lows of $25.7x.

    Has been down quite some on no specific news the past week or so.

    Own some and added more today to capture tomorrow’s dividend and aim to exit if / when it gets back to $26s where it traded until past few weeks

  14. Someone wanting to reach for yield a bit and have some longer term back side protection, PLYM-A may be snagged under 25.50 now. I bought 400 around $25.70 range and just doubled down with 200 at $25.50 and 200 more at $25.48. It kicks out a .4688 divi in 3 weeks. Hits first call date later this year and has penalty premiums added if not redeemed by 2024. Its an industrial reit.
    I wish I could buy more, but I have hit my limit.

    1. Grid:

      There was a discussion thread on PLYM+A a few weeks ago. I blew out of much of mine at $27+ when it was inexplicably trading there on 2/11/22. Will definitely be called at year end. I still hold some.

      It is a strange duck the way it trades. Too small to be owned by PFF. Hoping it gets jammed back to $27 for you!

      1. Rob, glad you got that upswing. I have traded this thing off and on for most of its issuance. And many other times I thought I was going to get some for a trade and kept getting jumped. Most infant industrial reits tend to shed their prefereds after reaching adolescence. So it wouldnt surprise me if they jettison this one fairly quick after call date. So it wouldnt surprise me if you got the last real good spike bounce. So hold I will, but will take a spike sell opp too if it happens.

      2. This is from today for them.

        “As of February 21, 2021, the Company’s current cash balance was approximately $9.8 million, excluding operating expense escrows of approximately $5.0 million, and it has approximately $141.0 million of availability under the existing unsecured line of credit.”

        So they do not have enough cash to redeem the preferred on hand. They won’t have enough cash by the call date. Is the assumption they will borrow the money, use their line of credit, sell more common ATM, or issue new preferred? The way things are going the whole issue new preferred for much less then 7.5% is looking iffy? They need approx 50 plus million to redeem A.

        I bought 200 shares. I am betting on them not calling it right away. They will probably want a bit more time or maybe deals will pop up they want to buy. But with only 200 shares bought I do not have much confidence with the above statement. Just puts some money to work with low risk.

        1. Fc, for me its good either way. It will work great for me as a 10 month call induced hold, or out to 2024 hook, too. But I would gladly take another spike and dump like Rob recently got. I have in past got buck flips on them in quick manner. But that was during yield chase heyday.
          I wouldnt put much stock in their cash on hand in terms of when they redeem. This preferred is not on the books as “asset capital”, its on the books as a liability, so its being treated as a term dated preferred. They can do all sorts of non cash transactions to rid itself of it like you said. Many times with these growing reits they just ATM the common.

            1. Thanks 730, as that is good news for me. I can now hopefully count on one issue not going to hell anyways, ha.

                1. Its never over until the fat lady sings the call notice and the money has been distributed that is certain. Fortunately or maybe unfortunately, I have a couple I own that I worry about more than this one for the time being.

            2. “When Jeff talks about the importance of the next 12 months to 18 months in the life of Plymouth, the potential of simplifying our balance sheet with this Series B paper working out exactly as intended and the ability to pay off our $51 million of Series A preferred stock at a 7.5% coupon in early 2023 are two great examples. We’re looking forward to being able to take these two series of preferred shares out of our capital stack.”

              Well the longer they delay into 2023 the better. Basically a maturity of early 2023 is pretty good in this env. Make a bit on the money without worrying about it getting trashed price wise like Grid said.

              1. The CFO, Dan Wright, talked about calling PLYM-A in early 2023 like it is a sure thing. I wonder if they are going on the recent past trends of how everybody and his brother could float relatively low coupon preferreds? How confident are you that PLYM or any other company can get those attractive rates one year from now? We can buy MNR-C with high confidence it will be called within this week. Maybe your crystal ball is good for 3 months out. How about 6 months or 12 months or 24 months?

                There are ways a company could lock in the rate one year from now, but they are not free and would hit earnings/FFO this year. (Cross-over refunding, revolver, interest rate swaps, new debt offering, etc.)

                The issue for us investors is to handicap the call probability of every issue that is coming up say in the next year or two. A wide range of possible interest rates translates into a binary choice of call/no-call on specific issues.

                Bottom line to me regarding PLYM-A is that an early 2023 call is less than 100% probable like management implies. And if the company is NOT able to call it, where does the price go to since not calling it would be viewed in a negative light?

                We do not currently hold PLYM-A in any account. We used to have it many accounts but sold it a while back.

                1. Tex, Yes, anything can always happen. But if it is or isnt redeemed these typically have nothing to do with a reissue. It will be paid off with debt or typically more likely common stock ATM. Fledgling reits like these want preferreds disposed of. He sure is implying the typical playbook of a baby reit growing into adolescence.
                  At companies origin, they issue cap stack of common and preferred with yield.
                  With anticipation of company growing into itself with stock appreciation and then issue more equity to pay off this liability. As you can tell he mentioned directly “simplifying the balance sheet”. This means the goal is to knock out the preferreds. They have two the Series A which is this, and a Series B convertible/redeemable. This one actually is more onerous due to its provisions and private placement price at $17.
                  They also have that two year window before yield adjustment kicks in on A so its not a necessity to immediately act. I have read on more than one occasion about a preferred being redeemed and it not happening. Maiden CEO stated in conference call MH-A was going to be redeemed later that same year a few years ago. Well, things happened and now in 2022 not only has MH-A not been redeemed, its dividend was suspended later that year and is still suspended over 3 years later and running.

                  1. Grid, if things go south, PLYM’s common price would be below NAV, so using their ATM to issue more common would be dilutive. They could do it, but it would probably tank the common price even more and get into a negative feedback loop. Yes, they could always float bonds, but at what rate? It might force them to leave the -A outstanding even if the rate kicker starts up. Not quite as bad as Maiden suspending payouts and actually if you held it, you would probably be happy. But at the same time, it would be indicative the balance sheet would be worsening by the day. . . Unknowable at this point.

                    My comment was more intended to apply to all potentially callable issues, not just PLYM. What management thinks and says today, might not be possible in a year or two. . .

                    1. True, but one could say that about any issue, any company, any time if they had a financial problem.
                      I took your original post to be a concern if interest rates went up to where they couldnt reissue a preferreed lower as that was what you were discussing. So I was just explaining the process that they wouldnt be looking for a lower coupon preferred to issue.

                  2. Thanks for bringing up the bad memories…. Fortunately my experience centered around Maiden Holdings North America, not Maiden Holdings, Ltd but I got sucked into MHNC after watching MHNA being called in 2016 and then buying MHNB in advance of its call in 2017… What the heck, what could go wrong? MHNC was only .25% lower than MHNB and it was investment grade, so why not jump on board? So yes, good example of when a company says one thing and then never comes thru. Lucky the “North Amerca” aspect was saved from as dramatic fall of the Ltd issues but it still hurt.

                    BTW, no panic if MNR-C doesn’t get called today…. The only thing promised is a call, “on the fifth business day (the “Closing Date”) after the day on which the last of the closing conditions to be satisfied or waived…” Normally, but not always, the shareholder vote constitutes that last closing conditions, but this might be another example of the MNR situation being the exception to the rule.

    2. Grid, thanks for the heads up. Picked up some shares of PLYM-A. They should be a good replacement for my MNR-C shares that will soon be redeemed . With the 47 cents divi in 3 weeks at $25.50 these are selling almost at redemption value. And the likelihood of them being called in 2024 should hopefully limit any potential downside

  15. Just sold ABR-F @ $24.17 and
    bot ABR-E @ $22.49.

    Could never understand this imbalance. Can somebody?

    1. F has a min float rate. From 10/30/2026 dividends will be paid at a floating rate of the Three-Month SOFR plus 5.442% per annum however, that in no event shall the Floating Rate be lower than 6.125% per annum.

      1. qx,

        Right, the difference is the min float rate of ABR-F, but in my mind the difference in prices seemed to big when ABR-E has a fixed 6.25%, unless of course if one believes that after 2026 SOFR will be so high and for long enough to justify such difference in price today?

  16. Both “flipping” and “dividend capture” as strategies may become less reliable in a rising rate environment than it would be in a stable or falling rate scenario, as prices go in a downtrend. Another strategy that I have used at times is a spread trade, where you find an issuer with more than one series of exchange traded debt. you follow the price differences between the various series and switch from one series to the other as the spread narrows/widens favorably relative to where it was when you entered your position. Worked well with some of the Southern company (utility) preferred and ABR-A/B before they were called. If they are trading at a premium and one is approaching call, be careful, because the issue approaching the first call date may approach par to prevent a negative YTC scenario

    1. When there is volatility the wild price movements can drown out those small gains, making it hard to tell if the strategy is working. Avoid risk when stacking nickels.
      Spread trades you describe are always a good idea for something you plan to keep through the storm. There’s often more price divergence between similar issues when there’s volatiltity.

    2. I don’t have a problem selling XYZ-A at a loss if XYZ-B gets whacked and offers a much better yield, all else being equal.

      As Martin G stated, when there’s volatility, usually there are more divergences between similar issues. However, that has not been the case in this correction as the spread between the highest yielders and the lowest yielders has contracted.

      Long/short pairs trading has worked well in previous volatility divergences. It’s pretty much dead in this contraction because the low yielders issued over the past few years have been whacked much more.

      1. I like to swap between similar things like two separate issues from the same parent company. When they should be moving in tandem but dont. I also trade different types with different rates but I don’t consider it a direct swap.
        I bought a couple financials around 6%. Maybe I’m too early but I like to gradually buy into the price drops I never know when it wil turn..

  17. DDT is the perfect example of not buying and holding on spikes. I sold out a few days ago at $27.50 and got them all back today at $26.23 today. When you bank profits, it makes it mentally easier to hold if you reenter lower and it would sag more. SR-A scores yet again for me. Got in at 26.04 and 25.88 and sold yesterday all at $26.50. Hopefully it falls back into the buy zone soon again. I blew it on NSS this morning as it sagged into low 24.70s and I missed it, as it has already bounced back to its more normal $25 range.

      1. qxjm, I just follow the credit quality and price action within the relm of current interest rate sentiment, so everything is subjective. That being said, I personally wont buy at that price point. History shows you will in time get that shot again around $26. It always seems prone to spikes then fall backs.

    1. Bought back all my SR-A 1000 shares at 25.95/25.90 today after redumping yet again at $26.50 last week. I really like this sub 6% ute, but I had to trade it hard last few weeks to get this recent batch cost basis well under $25. Investing is part mental, and using my mental math, I can feel comfortable owning this if it drops further. Of course if it bounces high enough, bye bye again you go for the zillionth time.
      I have been doing this with C-N also, and was forced to sell some today as it went back near $27. I may not get another drop significant enough to repurchase so if it rises more, sadly the other big chunk will have to go at some point. As risk/reward being past call is too penal.

      1. Grid – I have a suggestion – I bet there are III’ers who’d love for you to get into the details of the math calculations and how you keep track of them over time when your trades “get this recent batch cost basis well under $25.” The reason I say this is that I don’t think you ever see that actual under $25 number show up on your brokerage account, right? It’s a number you have to track based on using your flipping profits to rejigger your actual cost, right? I mean right now in your example of your purchase of 1000 shares of SR-A, your broker’s always going to show your cost @ 25.95/90, but mentally you know your cost is under $25. how do you keep track of that number over multiple flips???? I know it’s not rocket science, but it might be worth sharing.. I’m always willing to suggest even more ways for you to share your winning ways here than you already do.. as if it’s not enough… ha

        1. Yes, that is why I said “mental math” which is fake and contorted. Basically I have done 3 recent 50 cent round trippers. They are close enough in time together, I consider it the “cost basis”. But its not, as unfortunately these all were done in tradeable account so I have STCP tax on these come filing time.
          Investing is part mental to me, so if this drops to $25 tomorrow, I wont feel like a loser buying them back, knowing I have had quick strike gains recently with them which would help salve the wound. If a few weeks ago, I bought in 25.80s like I did and just had held them down to $25, I would be ticked. But mentally I can handle it now after quickly trading them a few times. If it spikes up some again, and I cant get back in thats fine, there are others. I have sat this one out for 6 months before waiting for an entry point.
          My theory has been the general trend has been downward biased pressure, but they dont go down on a slide. Some issues like SR-A and C-N are putting up “fights”. And they have the liquidity to be able to exploit the trends either way in modest proportions.
          Like anything, it will work…until it doesnt….

    2. Was not familiar with NSS, but, upon examination, it looks to be a candidate for a spread trade with NS-A. Both are floating rate at this point, the floating rate is very close, the credit ratings are close (same for Moody’s, 1 notch different S&P), the spread fluctuates in a 10% range fairly often, and as an extra bonus, the ex dates are in a different month, making it a candidate for dividend capture as well. For flipping, NS-A has greater volitility than NSS, if you can time it right.

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