Convertible Arbitrage: A Smart Play on #micostrategy $MSTR?

Here’s how you can exploit inefficiencies in MicroStrategy (MSTR) convertible bonds & stock:

1. Buy MSTR Convertible Bonds

• Earn interest & gain exposure to stock through the bond’s conversion option.

2. Short MSTR Stock

• Hedge stock risk by shorting shares equal to the bond’s “delta” (e.g., short 7 shares for a bond with delta = 0.7).

3. Profit from Arbitrage

• You collect bond interest & profit from pricing discrepancies between the bond and stock.

Risks:

• Borrowing costs for shorting.

• Illiquid bonds.

• Imperfect hedges from delta changes.

Done right, this strategy extracts a risk-adjusted premium from market inefficiencies. A classic convertible arbitrage move! nostr:note1mxwl33ec0shh287muansmlstw8sflw852sat8xulpadqlxxnzk9s6vtcgv