Mutual funds pay low dividends, so it's like creating a fund of your own, but it's so financial heavy. One would definately have to have a way to hedge this. I just don't know options, except there are many different ways to trade them. That's why I was looking at the triple financials, but doesn't seem the way to go. I'll be two months or more before I can devote enough time to absorb options.
I assume if a company suddenly files bankruptcy, as Washington Mutual did, even options would be worthless. So you'd lose whatever portion of your portfolio was invested in that company, including options???
Actually, WAMU was shut down for supposed liquidity issues, after 4 p.m., of course. Then they filed bk, with only the bondholders having a chance of any recovery. I forget the name of the Texas man who had just invested seven billion with WAMU. I assume in bonds and/or preferred stock. I've always wondered if he every recouped anything, but got tired of following the saga. lol
