[jyl]

In my experience, very few equity mutual funds will actively trade options. They will sometimes lend their shares to shorts, and sometimes to sell covered calls against them. But most equity mutual fund managers do not have the mandate or the experience/skills/systems for options trading. Same for most managers of institutional equity portfolios.

I think it is a shame. Being able to hedge an equity position, or simply market exposure, at certain times would be darned useful for us. But it has to do with inertia as well as client mandates.