"How about you give it a try next time you have a loss. Less us know how your "hedge" works out!" On more than one occassion when IV is up , as a long stock position has started to move against me, I have shorted a dtm call for more than my entry price on the stock, either letting the stock get called away from me at a profit, or buying back the short call as the downtrend reversed. As long as the cost of carrying the position doesn't exceed currrent interest rates, you should come out ahead. Or when I've been short calls I have covered the shorts with stock purchased at a price less than the strike price plus premium I received.