I don't think CEFs have options in most cases, but could be wrong. Certain index-tracking CEFs of course can be perfectly hedged with options or futures on the relevant index, and these CEFs often do have actual options as well, e.g., QQQQ.
unsure its a so called "gravy train"...?...how do you come to that conclusion...?...156c paid through the most brutal downturn most of us will ever see in our lifetime and IGD/IGA/IAE/IID/IRR never missed a beat...long and strong with great strategy and mgmt...stop bashing and start investing...glta!
I wouldn't qualify a simple question as "bashing". Bashing would be pointing out that IGD had over $1 billion in net losses from FY 2008 through FY 2009. Bashing would be to report that IGD has had outgoing cashflow of negative $985 million over the past two years. Bashing would be pointing out that IGD's net assets have diminished by 51% since the start of 2008.
Why wouldn't it therefore be prudent to ask the question: Can IGD continue to afford to pay $200 million in dividends every year when they didn't even turn a profit in 2008?
I'm long the investment (for now), but you can't help but be a little skeptical of the continued ultra-high yield via dividend distributions when the underlying fundamental are in question.
I think asking these sorts of questions is perfectly reasonable, and I hate it when perma-longs come in and simply dismiss valid concerns with rah-rah speeches and zero data.