The Big Boys, page-325

Captain
Thanks for the thoughts; all very lucid "for a few cans in". LOL
I am still in the midst of your web reference site and the inevitable 1/2 dozen other sites I linked through to.
Specifically, this weekends agenda is I would be interested to hear from you (or anyone else) whether they think it is possible to set up a hedging startegy that allows a SMSF to chase down a "risk free" (I suspect there is no such thing) dividend strategy.
"buy the share for the juicy FF divs that can get around 10% after franking and use a derivative (buying a put seems obvious)"

So say BHP; paid about $170 ff div last year; buy at $25 = 6.8% ff div. (about 10% after franking)
If you concurrently buy a put you should be able to protect downside (and limit upside) .... Question is how/if you can buy for "full" downside protection .... and of course the cost. My experience with options is that they are fairy illiquid and certainly do not move in value in direct correlation with share price/instrument moves.

eg If I could "lock in" a 10% return I would take it through these "uncertain" times and when my charts and instincts dictate aim would be to close the hedge.

Might sound basic but I would appreciate any advice from anyone doing such a strategy.

Any thoughts appreciated.
cheers g