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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Haim R. Branisteanu who wrote (31461)5/2/2005 8:56:45 AM
From: Knighty Tin  Read Replies (1) of 110194
 
Haim, Dynamic hedging is not done in the fund world. Too risky. And, yes, you can buy back the call and sell the stock, but that creates a capital loss. Which cuts into your dividend, which is a capital gain.

These funds do well in an up market and outperform but lose money in a crashing market. Where they get killed is in a market that is slowly grinding down.
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