Hedging Dividend Socks

Discussion in 'Stocks' started by Pa(b)st Prime, Sep 16, 2008.

  1. As we all know there's high yield opportunities galore in this environment. The flip side is price risk. Clipping 10% dividends is little comfort if the issue breaks 20%.

    Options of course reflect a high yielders positive carry.

    Throw some hedging ideas at me.
     
  2. ?...........at-the-money, shorter-dated, covered calls? :confused:
     
  3. You got me thinking about something.
     
  4. Write some naked puts to get into them & then sell calls against them

    Thats one that comes to mind. At least that would drop your break-even price on the entry.