In what one might call one of my ‘penny wise, pound foolish’ moments I have been trying to buy 100 shares of the new very short duration RiverNorth/DoubleLine Strategic Opportunity Fund 6% Term preferred all morning. I only wanted to pay $10.03 per share–at 6% the coupon is somewhat lite for me–thus penny wise pound foolish.
Does it matter if I spend an extra $4? Of course not! I know it will trade within 5-10 cents of $10 (liquidation preference) for the next number of months–or maybe years.
In these situations I just finally give in and buy the shares–then I will set a good-til-cancelled order in at $10.02–eventually I will get some more shares at my price. This is simply a cash proxy until 2027 since it is a somewhat better coupon than money markets and CDs. The games I play over $4.
I seem to have the most success with odd lots less than 100 shares when trying to buy on the cheap.
I think I am the master at placing limit orders that miss by a penny.
I somehow mystically find exactly the floor (for buys) or ceiling (for sells) prices and am off by one cent. Happens SO much to me.
Maybe I ought to start a service. Publish all my bids so people can know where to place bids one penny off.
If the spread is less than 10 cents of so, I’ll go ahead and hit the ask on less than 100 shares – most times I get somewhere in-between anyway. 100 or more shares, I usually place a limit order at the bid or a couple cents higher. For larger spreads, I always use limit orders – I am guessing most here as well?
I once had a big limit buy order not go off because of 1 cent. Security was worthless shortly thereafter. A penny saved me thousands
Well I missed out on those new METC baby bonds by a few cents being cheap. I could have sold for approx .40 cents more today. All in a matter of several days. Yea.. it happens frequently to everyone.
Does $4 matter? No. But it’s the principle of the thing… 😉
> it’s the principle of the thing…
Ha, those are six of the most expensive words in the English language.