I'm new to trading bonds, and was wondering if a particular strategy makes sense to you guys. I'm specifically looking at SGOV, but this strategy in theory could be applied to any low volatility stock that pays a decent dividend. I noticed that SGOV is low volatility, but it does go up or down in value over time… So to not risk holding it while it potentially goes down in price over time, would buying it the day before the ex div date and then selling it the next day make sense? That way you can collect the dividend while minimizing the long-term risk. It sounds too simple and easy to be true, so I feel like I'm missing something critical. Any thoughts? Apologies if this is a dumb question. It's like Mr. Garrison said, “There are no stupid questions, just stupid people.”
Thanks guys 🙂
ps I tried asking chatbot gpt but it hadnt heard of SGOV before and I couldn't really get a clear answer out of it.
Leave a Reply