I have fallen into a classic short trap.  I shorted AMZN.  I don't really recommend this as it's the stock that never goes down.  It trades at ridiculous multiples to earnings, but it does have it's tentacles everywhere.

Probably a loser trade, but that is usually the case with anything that smells like a hedge.  This year I have lost about 3+% to hedging.  All in the name of keeping returns more stable.  I have the internal debate about whether this is a good idea or not all the time.  No answer yet, both sides are hard-headed   :)


Also, volatility is still cheap in absolute terms, so if you are at all nervous options are not a bad way to either gain exposure (calls) or hedge (puts).  I bought a few of the December 135Puts for $0.42.  Also probably a loser trade, but I rationalize by paying for it with my dividend yield.