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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
I still don’t think the short term correction is over. I opened puts on bac, uso and calls on GDX to hedge my long dividend portfolio.
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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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