by Caryl Buckstein

Created on: April 19, 2009   Last Updated: April 24, 2009

It even sounds green: Hedging can help fight greenhouse gas emissions.

In this case we're talking about hedging your investments. One particularly efficient investment method covered call investing provides a sound method to funnel private funding to companies geared to progress in this sector.

Greenhouse gas emissions trap heat in the atmosphere. They are blamed as a source of global warming and climate change. Nature causes some greenhouse gas emissions, but, according to the US Environmental Protection Agency, in recent decades most of the warming is the result of man-made activity.

Humans have burned fossil fuels, such as coal, natural gas, oil and gasoline to power our cars, factories, utilities and appliances. These activities have added gases particularly carbon dioxide and methane to already naturally occurring gases to likely contribute to an increase in the average global temperature and climate change.

Many countries already have enacted massive changes in response to global warming. It's possible that the EPA follow suit in the US, and American companies already are working to keep ahead of the curve.

It's a great opportunity for investors to get a jump on a pending change in regulation across the country and a quantum shift in technology. The possibility for great rewards comes with great risks, and the strategies that come with covered call investing may help.

How do you go about picking good investments optionable stocks that will support cutting-edge companies working to cut greenhouse gases?

Let's look at specific areas, such as cars and utilities, and the companies involved in them. Changes will impact things we use every day.

In the area of cars, one of the most publicized is the hybrids - automobiles designed to lessen their environmental impact. The major players are Toyota (TM) and Honda (HMC) both optionable stocks.

In 2008, Toyota sold 429,000 hybrids and has a goal of one-million by early next decade.

All of the American automakers have followed suit. Many of the companies were particularly beat up in the Recession.

When you look at automakers, also look at the companies that make their parts. For example, let's glance at the producers of car batteries. Panasonic (PC) boosted its production of automotive battery packs in 2009.

While most of its EV battery packs are used by Toyota, Panasonic also supplies them for the Chevy Tahoe and the GMC Yukon. It also plans to supply the packs used in the third-generation Prius and a Lexus model.

Another area with vast opportunities: utility-based companies. Just look at one segmentwind power

For example, take American Superconductor (AMSC) has a power systems division that markets electrical systems used in wind turbines and electronic power products that regulate wind farm voltage.

You may better know it for bake ware, but Owens Corning (OC) also produces glass fiber reinforced composite materials used in producing wind energy blades.

Dallas-based Trinity Energy (TRN) manufactures structural wind towers.

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