I'm a trader, not an investor. But I have extra cash with which I'd like to create income instead of just sitting idle. Here's an idea I've been kicking around. See if you can shoot any holes in it. 1. 100K account. Buy a 200K basket of dividend yielding 'blue chips' paying an average yield of 5-6%. (IB's margin rates are very low at present.) 2. Sell 4 ES futures contracts in the account. My objective of course is to minimize damage from overall market risk on the downside with the short futures. Individual company risk is protected somewhat by the dividend yield. If the market rallies, the short futures will lose, but a diversified basket of stocks will tend to rally equally, making it pretty much a wash. But the dividends will continue the same yield. Other than the possibility of a sharp pullback in one of the stocks being held, I don't see too much downside to this strategy, with the possibility of at least some income from the account. Intelligent comments?