Hedging The 4 Most Active Mid Caps

By David Pinsen:In a recent article ("7 Large-Cap Dividend Stocks Undervalued By Levered Free Cash Flow"), Seeking Alpha contributor Kapitall analyzed a diverse group of seven dividend-paying stocks, with market capitalizations greater than $10 billion, that were undervalued by levered free cash flow. In this post, we'll look at the hedging costs of them.

By David Pinsen: Hedging 4 Midcaps Trading Near 52-Week Highs

By David Pinsen:On Friday, when the Russel 2000 Index dropped fractionally, to close at 830.18, there were five small cap stocks that each had trading volumes of over 14 million shares. The trading volumes on these five stocks ranged from approximately 14.6 million, for Patriot Coal Corp. (PCX) to approximately 20.4 million for Rite Aide Corp.

By David Pinsen:As of Wednesday's close, the Chicago Board Options Exchange Market Volatility Index (VIX) had ticked down 0.62% on the day to 19.09. The table below shows the costs, as of Wednesday's close, of hedging the most actively-traded New York Stock Exchange stocks against greater-than-20% declines over the next several months, using optimal puts. Comparisons

David Pinsen submits:The table below shows the costs as of Wednesday's close of hedging the most actively-traded Nasdaq stocks against greater-than-20% declines over the next several months, using the optimal puts for that. Comparisons

By David Pinsen:On Monday, a day when the Nasdaq Composite declined fractionally, several Nasdaq stocks rose on unusual volume -- six of them rose on increases in their daily volumes of more than 100%. Of those six, one of them, MGE Energy, Inc. (MGEE), didn't have options traded on it.

By David Pinsen:On Wednesday, a day when the Nasdaq Composite declined nearly 1%, several Nasdaq stocks rose on unusual volume -- six of them rose on increases in their daily volumes of more than 100%. The table below shows the costs, as of Wednesday's close, of hedging those six stocks against greater-than-23% declines over the next several months, using optimal puts. Comparisons

David Pinsen submits:At the end of the sixth straight down week for stocks, the Chicago Board Options Exchange Market Volatility Index (VIX) ticked up 6.13%. The table below shows the costs, as of Friday's close, of hedging the most actively-traded (by share volume) New York Stock Exchange stocks against greater-than-20% declines over the next several months, using the optimal puts for that. Comparisons