Hedge Stock
All Strategies
Bullish Outlook
Bearish Outlook
Neutral Outlook
Hedge Stock
Acquire Stock
Produce Income
Implied Volatility Increase
Implied Volatility Decrease
Sharp Move Up or Down
Buying Index Calls & Puts
Collar (Protective Collar)
The investor adds a collar to an existing long stock position as a temporary, slightly less-than-complete hedge against the effects of a possible near-term decline.
Covered Call (Buy/Write)
This strategy consists of writing a call that is covered by an equivalent long stock position.
Covered Ratio Spread
This strategy profits if the underlying stock moves up to, but not above, the strike price of the short calls.
Long Ratio Put Spread
The initial cost to initiate this strategy is rather low, and may even earn a credit, but the downside potential is substantial.
Protective Put (Married Put)
This strategy consists of adding a long put position to a long stock position.