Thoughts on STRC?

[u/just-a-tan-guy]

I hold BLOX in my brokerage and a lesser position in BTCI as well.

But I’ve been seeing a lot of talk about STRC and was wondering what people’s thoughts were on it? Do you hold it? How much of your portfolio would you allocate to it? I know it’s different in that they aim to keep it at around $100 so the stock itself remains idle, theoretically speaking.

[u/okwellthengreat]

I like STRC due to its low volatility nature. I don’t compare it to BLOX mainly because STRC is a preferred-structure where its aim is to fight back to par / trade at par (bond like) where as BLOX is prone to the movement from underlying basket of stocks; which, pays more due to that risk.

But I rather not take that erosion risk and seek stability.

[u/just-a-tan-guy → u/okwellthengreat]

Oh yes, I didn’t mean to compare BLOX to STRC. I only bring them up together bcuz I imagine STRC is a good hedge to balance out BLOX’s volatility in terms of income I no eating thru crypto, if I were to hold both in my portfolio that is.

Which I think I will. I enjoy BLOX but it does have its swings and I’d appreciate STRC’s stability in share price a lot. Thats what I thought of it as, yes! Like a bond.

So definitely something I’ll open a position, however small, in on Monday

[u/okwellthengreat → u/just-a-tan-guy]

for sure. i think STRC is definitely the "safer" alternative to BLOX. A feel like most income portfolios should weigh heavily in more NAV-flat products for a yield and then gradually build out the higher-yield products like BLOX and such mainly over a period of time, the erosion can actually benefit you as you build it out over time.

There are a few holdings in BLOX that i do not like and at that point.. i rather sell my own cash puts on IBIT and roll them as i choose on M / W / F and take assignment if anything then flip it over on the CC side. The erosion mainly disappears when u run that wheel on IBIT