RE:About To Do Something StupidWould have made so much more sense at sub 7, when premium was under 10% as well.
Premium is almost 30% now. So Ceteris Paribus, DFN can easily fall 15% (or even 20%) on some large sell order. And dividend payment cushion is just 6-7% now. So one more leg of selling in underlying stocks, and we are going to see dividend stopped. I would suggest you to hold off for now. Wait for that large move down first, or if you are really hungry for yield, do the same trade in a select basket of underlying (and not DFN per se). That way, you at least get the leveraged yield but spend 15-20% lesser on purchase.