Protective Puts can be used like insurance to protect your position or portfolio against unexpected market downturns—but how do we pay for it? An options Collar can be a good strategy that affords us the same protection but at little to no cost. Join OIC as we discuss the traditional Options Collar as well as incorporating a few unique twists. We’ll look at strike selection, expiration dates (including incorporating DIFFERENT expiry’s), and position management. We’ll also explore Put Spread Collars and see how they stack up to the traditional strategy. And as always, we’ll be sure to include plenty of examples and time for your questions in this unique and exciting look at the Options Collar.
Session topics include:
- A recap of traditional Collar
- Strike prices and expiration dates selection
- Staggering expiration dates
- How to manage under various market conditions (i.e. market rally through short strike, roll or not, etc.)
- When do staggered strikes perform better/worse than the traditional Collar
- Put Spread Collar – What Is It?
- What do you gain and give up compared to traditional Collar
- Examples with P&L graphs