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RE: TIB: Today I Bought (and Sold) - An Investors Journal #389 - Solar, US Banks, US Consumer Discretionary, Swiss Insurance, US Media, Polish Zloty
With implied volatility rising, an idea is to write some covered calls against the long dividend portfolio.
Hedge trades make sense to me - a bit wary of using USO as a hedge as the oil price is tracking higher. What I do like is vol is normally lower on it than on other energy plays. Vol on XLE is quite a bit lower than USO. Exxon and Chevron account for 40% of XLE.
Covered calls are a good play. I was very confident we these specific tickers would move lower in the short term. They expire next week so we will see how this goes.
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